All you need to know about DB consolidation

Capital-backed consolidators, or 'superfunds', are vehicles for defined benefit (DB) pension schemes to secure their members’ benefits, while 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 DB consolidation option for your scheme, drawing on our actuarial, investment, administration and transaction expertise.

Read all the latest on DB consolidation below.