More than half (57 per cent) of attendees backed returning pension scheme surpluses to employers following the Society of Pension Professionals’ (SPP) annual “The Debates” event, a marked shift from the 30 per cent who supported the idea before the discussion began.

Hosted by Pinsent Masons, the debate saw participants reassess their views after hearing arguments from Pinsent Masons pensions partner, Anna Taylor, and Association of Member Nominated Trustees (AMNT) co-chair, Maggie Rodger, a turnaround the organiser said underscored the impact of informed, balanced discussion.

Supporters of employer surplus release argued that employers contribute significantly more than members, bear the financial risk and should reasonably expect to recover excess funds, with trust law offering further support for that position.

Opponents countered that members also contribute, that many have already experienced reduced benefits while employer contributions remained unchanged, and that surplus should not become a profit-making mechanism for sponsors.

A second debate, led by WTW associate director, George Ellis and Aon associate partner and senior DC consultant, Yassin Isman, examined whether automatic enrolment (AE) contributions should rise above the current 8 per cent minimum.

Proponents warned that three-quarters of savers are not on track for a “moderate” retirement income, and suggested that increasing contributions to around 12 per cent could help most achieve a comfortable standard of living, while easing long-term pressure on the state.

Opponents argued that the priority should instead be to widen AE coverage by including the self-employed, lowering the entry age to 18, and removing the earnings trigger, and cautioned against placing further cost burdens on employers in a fragile economic environment.

Despite the debate, views remained largely unchanged, with 75 per cent in favour of higher contributions beforehand and 76 per cent afterwards.

Chairing the event, Royal London BPA Origination Manager, Tom Hill, said: “The SPP Debates again proved to be an engaging, informative and good-natured means of exploring a couple of the big issues facing the pensions industry and wider society.

"In the case of surplus release, the big swing in the end results helps to demonstrate that views can often change when the facts are debated.

"With regard to automatic enrolment, the fact views barely changed, and there was such strong support for an increase in contributions, which demonstrates the strength of feeling on this issue.”

This article was first published on our sister website, Pensions Age.

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