Closed consultation

Defined benefit pension scheme consolidation

We are analysing your feedback

Visit this page again soon to download the outcome to this public feedback.

Summary

This consultation seeks views on a new legislative framework for authorising and regulating defined benefit 'superfund' consolidation schemes.

This consultation ran from
to

Consultation description

Consolidating defined benefit pension schemes into superfund entities so that they benefit from improved funding, economies of scale and better governance will provide more security for members of some pension schemes.

Advantages of superfund schemes are they:

  • protect savers through a capital buffer, which will provide greater security by reducing the risks associated with future employer insolvencies
  • provide an alternative way for employers in certain circumstances to separate themselves from legacy pension arrangements by moving closed pension schemes into a superfund, freeing them to focus on the day-to-day running of their business
  • improve the likelihood of members’ benefits being paid in full
  • enable access to a wider and potentially more innovative mix of investment opportunities

This consultation seeks views on a new legislative framework for authorising and regulating defined benefit superfund consolidation schemes as described in Protecting defined benefit pension schemes, published in March 2018. It gives an indication of the government’s policy intentions and likely focus of the legislation.

We also published a consultation on Delivering collective defined contribution pension schemes on 6 November 2018.

Documents

Consolidation of defined benefit pension schemes

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 7 December 2018