Buy-In vs. Run-On: Navigating risk and cost in light of DB surplus reforms

The introduction of the UK Pension Schemes Bill 2025 looked to provide a framework for DB surplus release, which included shifting the extraction funding threshold from the traditional buyout funding level to a “low dependency” basis. This move has brought more schemes into scope for suplus extraction. What challenges may schemes face when comparing buy-out to run-on? Is there currently a preference? What do trustees think of the proposed surplus reforms? Read more about these changes and the results of Standard Life’s research.