Written by:
Read Time:
6 minutes
Published:
17 / 07 / 2025
Share Article:
Navigating the future of DB pensions: The case for outsourcing Scheme Services
For decades, UK sponsors of defined benefit (DB) pension schemes have viewed them as a legacy burden, financially draining and administratively complex. Many have invested hundreds of millions, even billions, into maintaining their schemes. But the narrative is shifting.
With improved funding levels and potential access to surplus, we are seeing potential benefits in Sponsors ‘running on’ their pension scheme. Schemes once viewed as liabilities are now being re-evaluated by some sponsors as untapped assets, especially in light of the recent Pension Schemes Bill which outlines a roadmap for significant reform.
Regulations and guidance on releasing surplus are expected to come into force by the end of 2027. However, seizing this opportunity demands new thinking, increased involvement, and efficient operations. That’s why we firmly believe Scheme Services, our outsourced pensions management solution, is uniquely positioned to deliver the support and confidence both trustees and sponsors need.
A challenging landscape
Operational costs are becoming a larger slice of the pie as today’s DB landscape matures; three-quarters of UK DB schemes are closed to future accrual and membership numbers are continuing to decline. Meanwhile, regulatory expectations are increasing, with requirements under the Pensions Regulator’s new General Code and heightened focus on data quality, risk management, and member communications.
Trustee boards are stretched. Many face governance fatigue, administrative bottlenecks, and growing exposure to key person risk. Sponsors are also grappling with the need for better decision making, real-time data, and integrated reporting to align scheme management with business strategy.
When outsourcing can make sense
Schemes benefit in two key ways: first, by consolidating day-to-day operations, governance, and specialist support into one integrated model, schemes gain operational efficiency and cost savings through economies of scale; second, our structured, end-to-end governance framework enhances decision making, improves responsiveness, and reduces execution risk. Whether a scheme remains with its sponsor for the long term or moves towards a risk settlement, trustees and sponsors are better positioned to deliver optimal outcomes for members with minimal disruption.
As the industry faces increased pressure from regulators, there is a growing need for experienced, stable pensions teams to support their trustees and members. At Brightwell, we understand the unique challenges faced by pension schemes, trustees and pension scheme executives. Our Scheme Services are designed to provide comprehensive, scalable support, ensuring effective governance, compliance, strategic management and ultimately, value for money.
Brightwell is not a traditional pensions consultancy firm. We are a highly experienced in-house pensions management team with over 40 years of deep experience running one of the UK’s largest DB schemes – BTPS. Our expertise has been shaped by navigating real-world complexities, and we now bring that experience to like-minded schemes facing similar challenges.
We offer a fully integrated suite of services, encompassing scheme communications and public relations, legal and compliance support, scheme accounting and tax, funding advice, risk management, and trustee secretariat services. While most providers in this space deliver fragmented services, Brightwell brings everything together under one roof, enabling seamless coordination and swifter decision making. In addition, we provide member administration, fiduciary, and investment management services which we can readily draw upon as needed to support your evolving requirements.
Through working with Brightwell, sponsors can avoid the rising costs of recruiting, training, and retaining in-house teams, while gaining on-demand access to senior level expertise. We will also collaborate closely with pension scheme executives to support the day-to-day management of the scheme, tailoring our approach to meet the specific needs of their trustees.
The future is about partnerships, not just outsourcing
Outsourcing should not mean losing control. With Brightwell, sponsors and trustees retain decision making power while being supported by a partner that understands the pressures from all sides, because we’ve lived them. We can act as an extension of your in-house team, working collaboratively to deliver on strategic priorities while reducing friction, enhancing governance, and achieving outcomes that are beneficial to all parties.
As the DB market enters a new era, characterised by stronger funding levels, potential access to surplus and regulatory pressures, schemes will continue to evolve. With a proven track record, deep industry knowledge, and a partnership mindset, Brightwell is the ideal partner to support your scheme’s next chapter.
To explore how we can support your journey, reach out to us at hello@brightwellpensions.com.
