Isio’s Scheme Run on Survey of Professional Trustees
Pensions
Launching our survey of professional trustees’ views about run on.
With UK DB schemes better funded than they have been for decades, the possibility of running schemes on over the longer term is a hot topic of debate, and the views of professional trustees will clearly be crucial for determining how common it becomes.
Our in-depth survey sought the views of professional trustees about key considerations for running schemes on, including the pros and cons of running schemes on over the medium to long term compared to moving to insurance at the earliest opportunity, the changes that would be required to make releasing surplus more common in ongoing schemes and for schemes that do run on and the factors that will be most important for setting an effective run on framework.
“Most professional trustees have an open mind to different ‘end games’ and see the employer’s views as key for deciding an approach. Employers that favour running on will be encouraged that most professional trustees would be comfortable for the member share of surplus to be less than the employer share. It can be easier to agree the sponsor’s preferred approach if it is raised early, so it is important for sponsors to model and quantitively assess different options.” – Matt Brown, Director