Dr Yvonne Braun, Director of Policy, Long-Term Savings and Protection at the ABI says:
“The Government’s DB White Paper rightly identifies that there is much more work to do before new types of commercial consolidation of DB schemes can be delivered without putting scheme members’ benefits at risk. In particular, the paper suggests that ‘superfunds’ should not be required to fund schemes at the level required through buy-outs. This would create an uneven playing field and could put scheme members’ benefits at risk.
“The ABI believes that the existing insurance market is the best means for employers to secure the health and future of DB scheme members’ pensions while reducing their own risk. The market is thriving, with £10 billion worth of deals written in 2016 alone and around 40% were smaller transactions.
“More widely, we support the Paper’s push for clearer, quicker and tougher regulatory action where employers are not living up to their pension promises to employees.”
-ENDS-