Question to the Department for Work and Pensions:

To ask His Majesty's Government whether surplus held within a defined benefit superfund may, under the current regulatory framework, be released to enhance members' benefits; and what assessment they have made of whether the proposed permanent legislative framework should facilitate such surplus distributions.

In the same way as any other defined benefit scheme, the rules of a superfund scheme will determine how and whether surplus assets can be used to enhance scheme benefits for members. Typically, the trust deed and rules of the scheme will contain an augmentation power or similar which can be used to increase benefits in some circumstances.

Within the permanent superfund framework, we expect innovation and different models will emerge. Some may offer to share surplus funds with members.