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Pension Schemes Bill focus: DB surplus release plans; TPR priorities and innovation service; DWP review of transfer rules—weekly update, 22 May 2025

Published on: 22 May 2025

Published by a LexisNexis Pensions expert
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  • Pension Schemes Bill
  • The Pensions Regulator
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Pension Schemes Bill

Pensions surplus release plans to be included in Pension Schemes Bill

In a statement, the Department for Work and Pensions (DWP) confirmed proposals that would permit defined benefit (DB) pension schemes to distribute a share of their surpluses through the forthcoming Pension Schemes Bill. The purpose is to help sponsoring employers reinvest in their businesses while unlocking extra value for scheme members. With around three-quarters of DB schemes now in surplus and deficit contributions markedly lower (from £16bn in 2010 to under £5bn in 2024), the DWP and pensions minister Torsten Bell emphasised that the reforms will ensure any surplus use is secure, member-centric, and aligned with wider economic ambitions. The precise design of the surplus policy will be detailed in the government’s reply to the Options for Defined Benefit Schemes consultation, which the DWP indicated is due in the ‘coming weeks’. For more information, see the DWP press release: Record pension scheme funding means up to £160 billion ready to boost growth...

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