FRC acts to support pension scheme actuaries ahead of new surplus flexibility rules

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Published: 11 June 2026

Ahead of new legislation expected to come into force in April 2027, the Financial Reporting Council (FRC) will develop technical actuarial guidance to help scheme actuaries certify that surplus payments to employers meet the legislative requirements.

The Government is consulting on legislation under the Pension Schemes Act 2026 to allow greater flexibility for surplus extraction from defined benefit pension schemes.

To give pension scheme actuaries the support required to provide actuarial certificates in this area, the FRC intends to coincide the publication of its technical actuarial guidance with the legislation coming into force, fulfilling the FRC's public interest mandate and obligations for developing technical actuarial standards.

The Financial Reporting Council (FRC) invites stakeholders to attend a roundtable to support the development of this guidance to ensure it is practical and proportionate. The roundtable is scheduled to take place online from 13:30pm-15:00pm on 28 July 2026. To express your interest in attending this roundtable, please email [email protected].

The Government's initiative to facilitate surplus sharing in pension schemes aims to support investment, growth and protect member outcomes. Most defined benefit pension schemes are  in a strong funding position, and our guidance will help actuaries apply proportionality and sound judgement, providing appropriate safeguards for members' interests

Mark Babington, FRC Executive Director of Regulatory Standards