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ABI responds to The Pension Regulator’s guidance for trustees considering transferring to a superfund

Today The Pensions Regulator has released guidance for Defined Benefit (DB) Trustees considering transferring their schemes to a DB superfund.

The guidance sets out the approach trustees and employers of DB funds should take when considering transacting with a superfund.

Rob Yuille, Assistant Director, Head of Long-Term Savings, at the Association of British Insurers said:

Rob Yuille“This guidance is a key line of defence in protecting Defined Benefit scheme members, so it needs to be rigorous. TPR is right to expect extensive due diligence by trustees, but it is no replacement for legislation. Trustees of schemes have one shot at severing the employee covenant, so they need to get it right and ensure scheme members are front and centre of any decision. As it stands the guidance is part of a regulatory regime which is not strong enough; legislation is needed as soon as possible.”

Last updated 21/10/2020