DB Taskforce

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DB Taskforce

The DB Taskforce was set up by the PLSA in March 2016 to undertake a review of the challenges facing funded defined benefit (DB) pension schemes, and make recommendations to Government to help ensure the sustainability of open DB schemes, and help closed DB schemes run off more efficiently and ultimately secure member benefits. The terms of reference for the Taskforce can be found here.

Interim report

In October 2016 the Taskforce published its Interim Report. This report showed that, on the whole, DB pension schemes were under severe pressure and without change the likely outcome would be hardship for members or sponsors.

Second report: The Case for Consolidation 

The second report of the Taskforce, The Case for Consolidation, examined four models of consolidation, and argued 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 considered a range of options to help pension schemes facing the challenges of underfunding, weak employer covenants and lack of scale. It set 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 was led by Ashok Gupta, previous co-deputy chair of the Bank of England’s enquiry into pro-cyclical investment by pension funds and insurance companies. He was joined by experts from across the industry and academia.

Taskforce members

Ashok Gupta (Chair), Duncan Buchanan, Frank Johnson, Paul Johnson, Jackie Peel, Tim Sharp, Stephen Soper, Robert Talbut, Paul Trickett, Kevin Wesbroom, Lesley Williams.