Sponsors and former employees benefit from getting stuck in.

How should old Defined Benefit pension schemes handle surpluses?  The government asked the pension industry and sponsoring corporations in a formal consultation closing April 19.  Positive answer.  Use them to dramatically boost pensions for today's workers at lower employer costs.  About £300 billion is at stake.

Running on - means keep going for long-term returns.  As undue confidence about life expectancy grows, the trustees will realise the scheme has more money than it needs.  Great opportunity to invest in government-approved productive assets like infrastructure.  In a new arrangement, solve intergenerational pension inequality and raise pensions with the sponsor.

And it will.  Provided there is no public policy blunder following the Consultation that allows sponsors to send large sums back to Global HQ and pass pension plans to life insurance.

Sponsors benefit greatly. DB surpluses paying more of their pension contributions and discretionary pension upgrades benefit companies and employees.  The super successful Pension Protection Fund with its £12bn surplus is covering more and more of plan members' remaining payments even if the sponsor dissolved.  A scheme that can afford a buyout can also avoid one.  Make sure the sponsor's Board sees the programme as a working ESG policy exemplar connected with its people and environmental values. A corporate wealth fund.

The justification for buyouts has collapsed with surpluses, unless you're in the wealthy actuarial consultancy/life insurer pension axis.  In April, a parliamentary Select Committee found that regulatory prudence had killed good pensions.

No need to be here.  But we are.  The key to pensions is patience.  Use discretion.  Avoid overcommitting.  Former and current employees should demand more.  The pension business obsesses over ‘Endgames’.  But it's not the end or a game.  Plenty to gain.  Existing trustee powers can make the benefit big and immediate with sponsor backing. The negative is remote and falling. 

Members can have a significant impact.  Member engagement was low when pensions were about trustees maintaining past benefits.  And now?  Just tell employers and trustees you want to know about their new discretionary opportunities.  The government is reconsidering.  Members also benefit from participation.