UK Pensions - Changes proposed to make surplus payments easier

The Government has published a consultation on options for defined benefit schemes, which includes proposals aimed at making it easier for trustees to make payments from surplus to sponsoring employers and scheme members. This follows a call for evidence published as part of last year’s Mansion House reforms, as well as the announcement at the Autumn Statement that the authorised surplus payments charge will be reduced from 35% to 25%.
 
The direction of travel is clear: the Government is committed to removing the barriers that can make surplus payments difficult for ongoing schemes. With many DB schemes currently in surplus, this consultation is timely and likely to be welcomed by employers. However, the timescales for implementation are currently unclear.


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