Jane Kola comments in The Actuary on Superfunds becoming the common solution for DB schemes
Research from Lincoln Pensions shows that 52% of the respondents expect consolidation to become more frequent, although just 11% are willing to be early adopters.
However, 27% of schemes think they will meet their ‘end-game’ funding targets within five years, which would prohibit them from entering a superfund under new rules proposed by the government.
Jane Kola said the new regulatory regime must be tough enough to improve outcomes, but not so restrictive that it prevents superfunds from flourishing.
“Actuaries may find many schemes want advice on whether they can get through the proposed ‘gateway’ to consolidation.
“It involves estimating buyout pricing, as buyout will need to be at least five years away.
“Schemes wanting a superfund solution will need to make sure they are transferring correct benefits to the superfund – it’s never too early to spring clean the legal and data benefit details.”
Read Jane’s comments in The Actuary
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