The combined IAS19 pensions surplus for UK FTSE 100 defined benefit (DB) pension schemes stood at around £60bn as at 31 August, broadly unchanged over the past two months, LCP’s Pensions Explorer has revealed.

LCP said that the "steady and robust" funding position of DB schemes is helpful as more schemes start planning and implementing run-on strategies aimed at delivering increased value to both members and pension scheme sponsors.

In particular, LCP said that it is seeing schemes who are aiming to run-on for the long term, as well as those who are getting benefit from simply delaying full insurance for a shorter period.

LCP also emphasised that these strategies are not solely available for large or giant schemes, revealing that while the potential financial prize may be larger for these schemes, its latest survey suggested that around a third of smaller schemes were targeting run-on or self-sufficiency as their long-term objective.

In addition to this, the firm said that it has been working with a number of these smaller schemes that are running on beyond full insurance funding.

Indeed, LCP argued that although the rationale for every scheme is different, recent experience has suggested that as long as the covenant is visible and there is sufficient upside potential, trustees and sponsors are willing to investigate running-on.

LCP also pointed out that the new government has also been making the "right noises" around run-on too, noting that, over the past month, Chancellor, Rachel Reeves has talked about wanting pension schemes to invest more into the UK economy, and to boost member outcomes.

LCP partner and head of endgame innovation, Jonathan Griffith, said: “As we have yet another month of strong funding levels, we see the confidence of sponsors and trustees of all schemes, irrespective of size, grow.

“Run-on strategies can deliver significant benefits to both members and to sponsors, and we are helping schemes develop robust strategies where this financial upside can be shared.”

LCP consultant and part of the endgame team, Aaron Chaderton, added: “Continued healthy funding levels, and continued rhetoric on UK growth from the government, gives schemes of all sizes great encouragement to consider run-on seriously.”

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