Ensuring DB pension schemes do not obstruct broader corporate activity is a key priority for corporate sponsors of DB schemes, according to the latest research by Hymans Robertson. This need for corporate flexibility was the top priority, cited by the highest proportion (37%) of companies in the research. This marks a growing alignment between pension strategy and corporate objectives, as sponsors increasingly recognise the importance of pension governance to broader strategic business planning. The firm warns that early engagement with trustees is essential to embed corporate flexibility around all these decisions and avoid pensions becoming a blocker at critical business junctures.
While buy-out remains the most popular endgame option, chosen by 60% of companies who recently reviewed their DB strategy, the appetite for alternatives such as superfunds and capital-backed journey plans is accelerating. These models are increasingly seen as credible, cost-effective routes to settlement and risk reduction. Nearly all those surveyed said they would consider either a superfund (99%) or a capital-backed journey plan (97%) as part of their endgame strategy.
Attitudes toward surplus strategies are also evolving fast. Support for the government’s agenda to encourage sharing surpluses and investment within the UK has jumped to 85%, up from 61% last year, as policy changes and stronger funding positions propel surplus sharing into the mainstream.
Commenting on attitudes of the corporate respondent to the survey, Sachin Patel, Head of Corporate DB, Hymans Robertson: "We’re witnessing a fundamental change in how corporates approach their DB pension schemes and this growing focus on flexibility marks a new era in the relationship between pension strategy and corporate business ambition. Sponsors are aligning DB decisions more closely with long-term business goals, reflecting an evolution in how pensions are viewed. The sharp rise in support for surplus sharing and the growing openness to superfunds show that sponsors are ready to embrace new solutions that balance member security, cost efficiency, and business flexibility.
“What’s most exciting is that this isn’t just about managing risk, it’s about unlocking value and aligning pension strategy with business strategy. The recent transactions completed by Clara Pensions and the announcement of a new superfund looking to enter the market, offering a new run-on proposition, underscores the growing maturity and innovation in this alternative market.
“Against this backdrop, companies must engage with trustees to ensure the chosen endgame supports the wider business objectives, and that they can capture the full value of this constantly changing pension landscape. Now is the time for sponsors to seize this opportunity, to embrace flexibility, innovate, and shape the future of DB pensions.”
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