Pensions - Articles - DWP consultation on DB pension scheme consolidation


Commenting on the Government’s response to the DWP’s consultation on the consolidation of DB pension schemes, Iain Pearce, Head of Alternative Risk Transfer, Hymans Robertson, said:

 “It is good to see the Government moving to provide more clarity for the superfund regime to support decision making for providers and pension schemes alike and sees the clear potential for superfunds to play a part in the wider objectives to push to utilise capital in pension schemes to stimulate economic growth.

 “The response demonstrates that there continues to be strong political support for superfunds. It appears eager to enable a wide range to develop - these could include sectionalised and non-sectionalised as well as both those aiming for buy-out and running on. In doing so, it confirms it is open in principle to models such as the Pension Superfund in addition to Clara-Pensions, which continues to be the only superfund that has completed the Pension Regulator’s assessment process.

 “The Government has acknowledged that, in order for the Superfund market to develop and thrive, there is a need for a clear separation in terms of pricing that could be offered by superfunds compared to insurers. This indicates that the regime may support superfunds to be around 10% cheaper, in part due lower standard for security with a softening of minimum capital requirements.

 “Providers will welcome the clear signposting of the preferred mechanism to allow returns to be extracted for capital providers, and trustees and sponsors will welcome the increased clarity on the advice requirement.”

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.