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Brightwell comments on the surplus extraction measures in the Pension Schemes Bill

Morten Nilsson, CEO, Brightwell said: “We welcome the measures announced by the government today in the Pension Schemes Bill which will give well-funded defined benefit (DB) pension schemes the ability to work with their sponsors on refunding contributions that are no longer required to deliver on the scheme’s promises.

“Up until now, UK businesses had full responsibility for repairing deficits in their pension schemes but had very limited access to any surplus.

“With up to £160bn of surplus that could be put to work, this bold reform could be a real boost to both UK companies and the UK economy but needs to be done with due care for scheme members.

 “Research we conducted with UK businesses found that they are poised to make the most of the new flexibility with the vast majority (93%) planning to access their DB pension scheme surplus. Nearly half of businesses surveyed (49%) said they plan to use these funds to invest in their UK operations, which is potentially good news for the government’s objectives to boost the economy.

“A third of companies said that having easier access to surplus would encourage them to run the pension scheme on for longer rather than opting for a buyout with an insurance company.“In our view, surplus should only be released where schemes are sufficiently well-funded and trustees are satisfied it is safe to do so. A gradual release would be the most prudent approach to prevent any regret risk.”

Notes to editors:

The research was conducted by Censuswide, among a sample of 100 Finance heads of organisations (Senior management / CFOs), with a Defined Benefit pension scheme, excluding organisations with only schemes open to new members. Respondents must have some involvement in the DB scheme, and a scheme size of £500 million+. The data was collected between 10.04.2025 – 06.05.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.