The Autumn Statement Makes Our Approach And Products Mainstream

“Run on pays off” for Defined Benefit schemes with a stable, long term investment strategy:  Provide third party, risk diversifying guarantees:  All stakeholders can share the benefits and surpluses.

These are the C-Suite themes which go right back to our 2018 webinar setting out a radically different mindset to improve pension provision.  Our cutting edge analysis in our paper from 2020, “Running On Pays Off”, showed why an alternative to the rush to “get rid” to a life insurer was needed.  The themes are now seen in our “Run On 4 Good” advocacy of aligning corporate and pension scheme ESG thinking.

To go mainstream and transform pension provision we urged Government to state that it encourages well funded schemes with strong sponsors to align with its pro-investment thinking.

One sentence can be transformational, we noted in responding to the recent DWP Call for Evidence:
“The Government encourage sound sponsors and trustees of well funded DB schemes to run on and modernise them to be ESG Flagships in all stakeholders’ interests.”

Now Jeremy Hunt has provided an equivalent sentence in his Autumn Statement.  Our proposals work within the existing regulatory framework which means you can move forward now rather than wait for legislation.

4.34  To increase opportunities for defined benefit schemes to invest in productive finance while fully protecting member benefits, the government will consult on whether changes to rules around when surpluses can be repaid, including new mechanisms to protect members, could incentivise investment by well-funded schemes in assets with higher returns. The authorised surplus repayment charge will also be reduced from 35% to 25% from 6 April 2024.

Should you wish to see how your DB scheme becomes and ESG Flagship we would be pleased to discuss – in particular Discretionary Step Ups and the FM+ approach developed with Van Lanschot Kempen.

“Boards and their corporate head office teams should embrace the DB pension scheme opportunities the Chancellor’s initiative provides.  All stakeholders benefit.”  William McGrath


William McGrath
Chief Executive, C-Suite Pension Strategies
T: 07768 607204
E: [email protected]

TC Jefferson
Chief Executive The Plenum Group & C-Suite Partner 
T: 07581 466620 
E: [email protected]