Employer Covenant

DB funding – update on revised code of practice

By Katherine Carter on January 20, 2022

The Pensions Regulator (the “Regulator”) has announced that it will not now consult on a revised defined benefit (“DB”) funding code of practice until late summer 2022.

Background

The Regulator’s current code of practice on DB scheme funding came into force in 2014. In 2020, the Regulator carried out the first of…

A question of value – contribution notices and the employer resources test

By Beth Brown on August 23, 2021

Posted in DB Pensions, Legislation, Pensions

You will no doubt recall that, back in February, the Pension Schemes Act 2021 (the “Act”) finally became law. The Act changes the pensions landscape quite drastically and one way it did this was to extend the Pensions Regulator (“tPR”)’s contribution notice (“CN”) regime.

What changed in a nutshell?

tPR…

Pension Schemes Bill – increased regulatory powers

By George Carr on October 24, 2019

Posted in DB Pensions, Legislation, Pensions

On 15 October, the eagerly awaited Pension Schemes Bill (the Bill) had its first reading in the House of Lords. Whilst the Bill addresses the launch of collective defined contribution (or CDC) pension schemes and includes provisions enabling pensions dashboards, employers will be particularly impacted by the new requirement on trustees to produce a funding…

Superfunds – another option for managing historic DB pension scheme liabilities?

By Olivia Caird on March 15, 2019

Posted in DB Pensions, Pensions

Superfunds are a hot topic right now in the pensions industry. A consultation on the regulation of superfunds has recently closed, and a response from the Government is expected in the near future. But what are superfunds, and why might they be of interest to an employer with a defined benefit (DB) pension scheme?

What is a “superfund”?

A superfund is an occupational pension scheme which will, at a cost, accept a transfer of assets and liabilities from a DB pension scheme.
It’s a relatively new concept – there aren’t currently any operational superfunds, although market entrants are actively seeking business.
The entity running the superfund will be aiming to make a profit and distribute returns to external investors. The expectation is that this can be achieved through cost efficiencies, better access to investment opportunities and the pooling of risk.
They will be regulated by the Pensions Regulator (although the authorisation framework is not yet in place) and the intention is that they will be eligible for the PPF.

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