Run-On Support
Keep control, cut costs and make your surplus work, run on with confidence.
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A cost-efficient long-term approach to your Pension Scheme
When considering the future of your pension scheme, a buy-out is not the only option. Many schemes choose to run-on, maintaining full control over assets and liabilities rather than transferring them to an insurer. Employers often use run on to benefit from the surplus in the scheme.
This could be either through use of surplus to support other pension contributions (e.g. DC contributions) or to simply extract the surplus and use it directly for the employer’s benefit. Run-on requires trustees to continue managing the scheme efficiently, reducing costs and preserving flexibility.
Dalriada.Together provides expert governance, strategic investment oversight, and regulatory compliance to ensure your scheme runs smoothly while mitigating risks. Our integrated approach ensures that your scheme remains sustainable and cost-effective over the long term.
What is a Run-On Pension Scheme?
A run-on strategy - sometimes called a self-sufficiency approach - means that your pension scheme remains active and continues to pay members’ benefits directly rather than securing an insurance buy-out. This option is particularly attractive when any potential surplus in the scheme can be returned to the employer. Your scheme is well-funded and can continue operating independently. You and your trustees believe they can achieve better returns through strategic investment management. Your employer prefers to maintain oversight rather than transfer liabilities to an insurer. A buy-out is too expensive or unnecessary for your scheme.
With strong governance and the right risk management framework, running on can be a cost-effective alternative that provides security and financial stability for your members.
The advantages of running on
Opting to run-on instead of a buy-out offers several key benefits:
Avoids high insurance premiums
Buy-outs require a significant premium to transfer risk to an insurer. Running on allows your scheme to continue without incurring these additional costs.
Investment control & potentially higher returns
Your trustees retain full investment control, enabling them to capture market opportunities and potentially improve funding levels and increase surplus.
Cost-effective governance
With a well-managed governance structure, your scheme can operate efficiently and transparently, ensuring members receive their benefits securely.
Flexibility for future Buy-Out
Running on doesn’t mean your scheme can’t buy out in the future—it simply provides more time to build up assets and secure better pricing.
Considerations & Risk Management
While running on provides significant benefits, you and your trustees must manage key challenges:
- Employer Liability – Unlike a buy-out, your employer retains some level of responsibility for funding shortfalls. However, higher funding levels means this risk is reduced and relatively low.
- Investment Risk – Market fluctuations and changing economic conditions can impact your scheme’s assets.
- Governance & Compliance – Strong governance is essential to maintaining a well-funded, self-sufficient scheme.
At Dalriada.Together, we provide the expertise, governance, and investment oversight required to help you manage these risks effectively, ensuring that your scheme remains sustainable and well-regulated.
Why choose Dalriada.Together for a Run-On strategy?
Dalriada.Together supports schemes that choose to run-on by providing:
Independent Trusteeship – Ensuring strong governance, regulatory compliance, and risk mitigation for your scheme.
Investment & Funding Oversight – Working with trusted advisers to implement sustainable funding and investment strategies tailored to your needs.
Actuarial & Administration Support – Ensuring accurate calculations, seamless member payments, and long-term scheme sustainability.
Future-Proofing for a Potential Buy-Out – Helping you prepare for a buy-out at the right time and at the best value.By integrating trusteeship, administration, investment oversight and actuarial support, we provide a holistic, cost-effective solution that allows your scheme to successfully operate in the long term while keeping future buy-out options open.
Buy-Out vs. Run-On: Which option is right for you?
Choosing between running on and a buy-out depends on your scheme’s funding position, risk appetite and long-term objectives.
If your scheme is well-funded and supported by strong governance, a run-on strategy may offer a more cost-effective alternative to an immediate buy-out. However, every scheme is different and the right path depends on your specific circumstances.
At Dalriada.Together, we bring independent expertise, operational efficiency and proactive risk management to help you assess and implement the best strategy. Whether you're considering running on or preparing for a future buy-out, we’ll work with you to design a long-term solution that delivers financial stability and regulatory confidence.
Ready to explore the benefits of running on?
Take full control of your pension scheme’s future with Dalriada.Together. Our experienced team provides integrated governance, investment oversight and strategic support to help your scheme run efficiently and sustainably.
Get in touch today to discover how a run-on strategy can unlock value and flexibility for your members, scheme and organisation.
