The DB Taskforce was set up by the PLSA in March 2016 to undertake a review of the challenges currently facing funded defined benefit (DB) pension schemes, and make recommendations to Government which will (a) help ensure the sustainability of open DB schemes and (b) help closed DB schemes run off more efficiently and ultimately secure member benefits. The terms of reference for the Taskforce can be found here.
In October 2016 the Taskforce published its Interim Report. This report shows that, on the whole, DB pension schemes are under severe pressure and without change the likely outcome will be hardship for members or sponsors.
Second report: The Case for Consolidation
The second report of the Taskforce, ‘The Case for Consolidation’ , examines four models of consolidation, and argues that full merger into a new type of ‘Superfund’ could deliver materially better outcomes for members, reducing risks to their benefits and the risks of their sponsor defaulting.
Final report: Opportunities for Change
The DB Taskforce launched its final report, on 27th September 2017. It considers a range of options to help pension schemes facing the challenges of underfunding, weak employer covenants and lack of scale. It sets out detailed proposals for a DB Chair’s Statement, Benefit Simplification, scheme consolidation and the potential benefits of covenant monetisation through Superfunds.
About The Taskforce
The Taskforce is led by Ashok Gupta , co-deputy chair of the Bank of England’s enquiry into pro-cyclical al investment by pension funds and insurance companies. He is joined by experts from across the industry and academia.
Ashok Gupta (Chair), Duncan Buchanan, Frank Johnson, Paul Johnson, Jackie Peel, Tim Sharp, Stephen Soper, Robert Talbut, Paul Trickett, Kevin Wesbroom, Lesley Williams.