Pensions - Articles - DB surpluses reach £220bn as industry awaits access reforms

The figure represents an increase from £199bn at the same point last year, showing the steady improvement in scheme funding positions, amid intense industry focus on the long-anticipated reforms to surplus access. According to XPS, total scheme assets stood at £1,180bn, compared with £960bn of liabilities on a long-term funding basis, resulting in a modest month-on-month improvement in overall funding levels.

 

The continued resilient funding levels experienced by many DB schemes further highlights the potential opportunities that could be unlocked once the much-awaited flexibilities around the use of surplus funds come into force. Consultation on regulations governing surplus release is expected this year, followed by regulatory guidance in late 2026 or early 2027.

 

Scheme assets remained broadly stable in January 2026. Small rises in gilt yields were largely offset by a slight increase in inflation expectations, leading to a marginal fall in the value of matching assets. Returns from growth assets contributed to a modest improvement in asset values overall.

 

Scheme liabilities edged down modestly over January 2026, as a small rise in gilt yields was largely offset by a slight increase in inflation expectations.

 

Jill Fletcher, Senior Consultant at XPS Group said: “Having the option to access surplus for well-funded schemes could be a positive step for Trustees, members and sponsors. As strong funding positions persist, some Trustees and sponsors will be keenly awaiting the regulations that will enable this, so that strategic plans to run-on their schemes whilst making use of these flexibilities can be put into action.”