Overview

• The Department for Work and Pensions impact assessment estimates unlocked surpluses will average £957 million per year and could fall to £153 million in lean years.
• Only £8.4 billion of pension surpluses can be withdrawn over the next decade, a fraction of the £160 billion ministers originally cited.
• Withdrawals are set to be split equally, with £4.2 billion allocated to employers and £4.2 billion paid as additional pension benefits.
• Many companies plan to use surplus cash to fund full buyout deals with insurers rather than reinvest or enhance pensions.
• Safeguards in the Pension Schemes Bill are designed to prevent employers from extracting excessive funds and protect members’ benefits.