NEWS   |    July 12, 2023

Beth Brown comments in the Financial Times on proposals for the PPF to act as a consolidator of DB schemes

In his Mansion House speech on Monday, Chancellor of the Exchequer Jeremy Hunt outlined plans to give the Pension Protection Fund a greater role in consolidating defined benefit pension schemes in the UK.

The PPF currently acts successfully as a lifeboat for distressed schemes, and there is a concern that easy access to the PPF could encourage healthy schemes to pursue riskier investment strategies.

Beth Brown highlighted that any proposals that encourage risky DB investment strategies would require “careful consideration,” further commenting that “nobody will want to see schemes engage in risky behaviour on the basis that they can opt into the Pension Protection Fund or the good behavioural changes around funding being unwound by inadvertently rewarding employers which have not funded their schemes well.”

Read Beth’s comments in the Financial Times, here, and Law360 here.

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