Christos Christou is a PMI Professional Trustee and has produced a proposal to the Pension PlayPen . For more details about Christos scroll to the bottom of this blog.
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The Challenge
• Based on DWP’s impact assessment (Sept 2024), the Government’s surplus extraction framework will mobilise around ~£8.4bn over 10 years.
• It is tax-leaking, complex, requires new regulations and first extractions are not expected until 2027.
The Complementary Policy Enhancement Solution
• Raise the cap on sponsoring employer securities from 5% to 10%, but only for schemes in surplus on a low dependency basis.
• Incremental headroom applies only to new securities issuance, ensuring fresh capital flows to employers for productive investment;
The Impact
• Creates ~£50bn headroom within DB pensions in surplus on low dependency basis (out of £1.24tn total DB assets as of Sept 2024), a headroom figure that TPR could further refine with scheme-level granularity.
• Realistic mobilisation: ~£20–30bn, triple the government’s current projections, with no tax leakage.
• Strengthens sponsor balance sheets, improving member security.
The Safeguard
• Only schemes in surplus on low dependency qualify.
• Assets remain within the pension scheme
• Trustees retain full fiduciary control.
Mobilisation Scenarios
Scenario Take-up Utilisation Mobilisation
Conservative 40% 60% £12bn
Base 50% 80% £20bn
Ambitious 75% 80% £30bn
Maximum 100% 100% £50bn
Timeline
• Can be included in the upcoming Pensions Bill.
• No new regulatory guidance required.
• Deliverable in 2026 with the passage of the Pensions Bill
Conclusion
A simple legislative adjustment could:
1. Unlock £20–30bn of productive finance.
2. Accelerate delivery of the Mansion House agenda. 3. Protect members through actuarially grounded safeguards, as low dependency avoids covenant- related judgements. 4. Strengthen UK employers and boost growth.
You will be able to hear Christos on Tuesday morning (4th Nov) at 10.30 am
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Christos Christou introduces himself
I help boards, investors, and business owners navigate governance, financial, and transformation challenges. My career spans consulting, banking, private equity, and interim executive roles — with a focus on capital raising, turnarounds, corporate governance and family governance.
I bring 22+ years of board experience as a Non-Executive Director across private companies in the UK and internationally, including family businesses, PE-backed ventures, and companies in stress or growth transition and scaling. I understand the priorities of investors and owners and contribute independent challenge, financial discipline, and cultural sensitivity. I am also available to serve as Senior Independent Director for private companies.
I am a Qualified Professional Trustee (PMI, UK), building on my financial and governance background to support effective pensions oversight. As a Member of the Academy of Experts, I provide expert witness and mediation services in complex commercial and financial disputes.
Alongside governance roles, I act as an Interim and Fractional CFO, supporting growth and early-stage companies on fundraising, financial strategy, and board reporting, including through my association with Acuity Associates, providers of interim and fractional CFOs to growth and mid-market companies, as a member of their roster of vetted finance professionals.
In select cases, I also take on turnaround CEO roles, providing hands-on leadership during periods of financial stress or transition, drawing on my direct experience of operational restructuring and stakeholder management in complex situations
I hold a BSc (Eng) in Electrical Engineering (Imperial College, First Class Honours) and an MBA from Harvard Business School.
