Capital-backed consolidators, or 'superfunds', are vehicles for defined benefit (DB) pension schemes to secure their members’ benefits, whilst breaking the link to the sponsoring employer. They can therefore offer a valuable endgame option to DB schemes in some circumstances, as an alternative to the traditional options of either a long-term run-off or buying out liabilities with an insurance company.

However, superfunds will not be right for all schemes. Trustees and employers will need to be satisfied that transferring to a superfund is in the scheme members’ best interests, taking into account the guidance published by The Pensions Regulator and the other endgame options available.

We are leading advisers in the developing superfund market, having been closely involved in researching and working with the main providers since their inception. We are therefore well-placed to help you decide whether a superfund is the right option for your scheme, drawing on our actuarial, investment, administration and transaction expertise.

Read all the latest on DB superfunds below…

 

DB consolidation: what options are available?

Our infographic is your at-a-glance guide to understanding DB scheme costs, consolidation options and how to choose the best course of action. 

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DB superfunds - an alternative endgame?

Despite the protections offered by TPR’s tough new regime, assessing whether or not a superfund is the right destination for a given pension scheme will not be an easy decision.

20 December 2021

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Navigating your endgame: the DB superfunds junction

Learn more about what the first defined benefit (DB) superfund transactions will look like and see how you can set a long-term objective with a superfund transaction in mind.

11 February 2021

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Navigating the DB superfund regime – is it right for you?

With the recent publication of The Pensions Regulator’s interim regime for capital-backed consolidation vehicles, the first “superfund” transactions are now closer than ever.

8 October 2020

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DB Superfunds – TPR sets a high bar for new consolidation option

Recently, the Pensions Regulator published the eagerly-awaited details of the interim regime for superfunds. From here, we explore what the new rules will mean for PSF and Clara, and any other new entrants into the market.

24 June 2020

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DB superfunds are emerging from lockdown, are schemes ready?

‘Superfund’ consolidation vehicles offer a genuine endgame option for schemes where buyout is perhaps out of reach, so we are pleased to see that, TPR’s interim regime has been published...

19 June 2020

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Superfunds: a new alternative to buy-outs?

Trustees must consider a number of factors when considering a superfund transaction. It is not just a way of bringing forward your endgame, says Barnett Waddingham’s Tom Hargreaves.  

18 April 2019 

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