The Pensions and Lifetime Savings Association (PLSA) has today (Friday) commented on the launch of the Government’s consultation on superfunds.
Joe Dabrowski, Head of DB, LGPS, and Standards, PLSA, said:
“We are pleased that the Government is taking action to enable scheme consolidation and the creation of superfunds. The PLSA’s Defined Benefit (DB) Taskforce – an independent group set-up in 2016 to review the challenges facing funded DB pension schemes – highlighted the many benefits that consolidation could provide for schemes and we are delighted that Government is taking this forward with detailed proposals.
“Over 11 million savers across the UK are still reliant on DB schemes for their retirement income but – despite employers making over £400 billion of contributions over the last 10 years – the vast majority of schemes remain in deficit. Allowing DB schemes the choice to consolidate and enter a superfund will provide a much needed new option for many schemes, and especially those with weaker employer covenants.
“The consultation provides welcome detail on the Government’s White Paper proposals. The regulatory framework as set out should provide protection for members’ benefits, ensure the Pensions Regulator can run a robust authorisation and supervisory regime, and deliver affordable new options for schemes and their employers.’’
ABOUT THE DB TASKFORCE
The DB Taskforce was set up by the PLSA in March 2016 to undertake a review of the challenges currently facing funded 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. To read more about the DB Taskforce and the case for consolidation click here.
Steven Kennedy, PR Manager
020 7601 1737 | 07713 073024 | [email protected]
Sabrina Francis, PR & Social Media Officer
020 7601 1748 | [email protected]