XPS Group Launches Integrated Run-On for DB Pension Scheme Management

XPS Group has introduced XPS Integrated Run-On, a new service designed to assist trustees and employers managing Defined Benefit (DB) pension schemes amid the UK's evolving surplus regulations. This initiative addresses the increasing interest from schemes considering run-on as a transitional solution toward full buyout or a permanent strategy. According to XPS research, UK DB schemes could potentially realize up to £170 billion in surplus over the next decade, with 41% of medium-to-large schemes evaluating run-on as a viable option.

The completion of the Pension Schemes Act signifies industry progression toward a revised surplus framework, leading to upcoming consultations from the Department for Work and Pensions and The Pensions Regulator. This development highlights the importance for trustees and sponsors to establish comprehensive strategies concerning surplus management, investment planning, and member protection.

Comprehensive Framework for Surplus Management

XPS Integrated Run-On leverages expertise across XPS' Pensions, Investment, Administration, and Insurance units, structured around the principles of strategy, governance, and administration. The service offers flexibility, allowing schemes to either adopt a fully outsourced solution or select individual components to enhance their existing run-on processes.

In support of this initiative, XPS has developed a community of schemes utilizing run-on strategies, promoting knowledge-sharing and best practices. This initiative follows the establishment of a discussion forum in December 2025, which featured senior leaders from 25 significant DB pension schemes, with collective assets surpassing £100 billion, providing critical insights to The Pensions Regulator.

Tom Froggett, Partner and Head of DB Run-On at XPS, emphasized the role of the Pension Schemes Act in shaping the new surplus regime. He noted the focus has shifted to how trustees and employers can implement effective run-on strategies. XPS Integrated Run-On aims to integrate essential elements into a cohesive framework, enhancing the efficacy of DB run-on initiatives.

In anticipation of the official launch, XPS has collaborated with various clients over the past year to develop and execute tailored run-on strategies. This includes assisting smaller schemes with streamlined approaches and enhancing the existing frameworks of larger schemes. To date, XPS has engaged with over 10 schemes managing more than £50 billion in combined assets, with ongoing feasibility assessments for additional schemes.

For further information on XPS Integrated Run-On, interested parties are encouraged to contact Tom Froggett or their regular XPS Group representative.