Open consultation

Defined benefit pension scheme consolidation

Summary

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

This consultation closes at

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

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Ways to respond

Email to:

db.consolidation@dwp.gsi.gov.uk

Write to:

Defined Benefit team
Private Pensions and Arm’s Length Bodies
1st Floor, Caxton House
Tothill Street
London
SW1H 9NA

Published 7 December 2018
Last updated 7 December 2018