Commenting on ONS figures for funded occupational pension schemes for April to September 2023, Calum Cooper, Partner and Head of Pensions Policy Innovation, Hymans Robertson said:

“The figures show a four-hold drop in deficit contributions to around £4bn per annum, which reflects a huge improvement in DB funding.  But it also reflects the long and tough journey to get here.  Employers have paid around £350bn in deficit contribution since 2006, and schemes have materially reduced their investment in enterprise.  Members have experienced a lot of tough change too, with benefit reforms plus over 3,000 DB schemes having closed to new hires.

“With surplus capital in DB now estimated by DWP at £225bn, many employers and trustees will be considering how that capital should be shared between the stakeholders, and indeed the generations.  This is one of those difficult but nice problems to have.  Happily, there’s a diverse range of endgame solutions available, and a political and regulatory environment supporting innovation in DB to improve stakeholder outcomes.”