Making sure people get the pension they’re promised has to be the number one priority when deciding what to do with any surplus in DB schemes. Research from the Pensions Policy Institute shows that taking money out increases the risk of schemes falling back into deficit, which could ultimately put people’s full pensions at risk. So it’s really important that the rules more clearly spell out how well-funded a scheme needs to be before any surplus can be touched.

While taking surplus funds out of pension schemes could offer a cash injection for employers, or increase member benefits, there’s no reason to assume how this money will be used. Funds may be strong right now, but those gains aren’t guaranteed and the same economic shocks which threaten surpluses could also impact sponsoring employers’ ability to cover any shortfall.