XPS Group has launched an integrated run-on solution to help trustees and employers of defined benefit (DB) pension schemes prepare for run-on ahead of the UK’s emerging surplus regime.
The proposition brings together expertise from XPS’s pensions, investment, administration and insurance consulting practices, and is designed to support schemes navigating the opportunities and complexities of running on through three core pillars: strategy, governance and administration.
The solution can be implemented as a fully outsourced, ‘one-stop-shop’ model or adopted in a modular way, allowing schemes to plug individual elements into their existing run-on framework.
XPS has also established a community of run-on pension funds to share insight on emerging practice and regulatory direction as the market develops.
The launch comes as more trustees and sponsors explore running on either as a transitional stage towards buyout or as a longer-term endgame strategy.
XPS research suggests UK DB schemes could generate up to £170bn of surplus over the next decade, measured as funding above 100% on a buyout basis, while 41% of medium-to-large schemes are now considering run-on strategies.
In January 2025, Schroders was among the first to signal support for run-on following the UK government’s pension reforms enabling greater use of surplus to support wider investment in the economy.
Stagecoach has since committed to running on, transferring its £1.2bn pension fund to Aberdeen, while TPT has set out plans for a DB run-on superfund targeting schemes seeking an alternative to buyout.
The passing of the Pension Schemes Act last month has brought the industry closer to a formal surplus framework, with attention now turning to consultations from the Department for Work and Pensions (DWP) and The Pensions Regulator (TPR).
XPS said this is driving demand for clearer, scheme-specific approaches to surplus release, governance, investment strategy and member security.
Tom Froggett, partner and head of DB run-on at XPS, said: “The Pension Schemes Act marks an important step towards a new DB surplus regime. The conversation is no longer just centred on whether schemes should run on, but on how trustees and employers can deliver the benefits of run-on in a safe, robust and efficient way.”
He added that this creates a wide range of strategic and operational challenges, from investment strategy and surplus release planning through to governance and administration.
He said: “XPS Integrated Run-On has been designed to bring these elements together into a single framework, helping trustees and employers optimise their DB run-on approach.”
Froggett added that XPS has already supported more than 10 pension funds over the past year, with combined assets of over £50bn, and has further feasibility work underway across a growing pipeline.
He said: “We look forward to working with more trustees and employers in the coming months to help them deliver the benefits of DB run-on to their members and employers.”
