Consultation outcome

Defined benefit pension scheme consolidation

• From: Department for Work and Pensions
• Published: 7 December 2018
• Last updated: 17 July 2023 — See all updates

This was published under the 2016 to 2019 May Conservative government

This consultation has concluded

Read the full outcome

Government response: Consolidation of defined benefit pension schemes

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Government response: Consolidation of defined benefit pension schemes

PDF, 550 KB, 52 pages

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Detail of outcome

The government published its response to this consultation on 11 July 2023.

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Original consultation

Summary

This consultation seeks views on a new legislative framework for authorising and regulating defined benefit 'superfund' consolidation schemes.

This consultation ran from
9:45am on 7 December 2018 to 11pm on 1 February 2019

Consultation description

Consolidating defined benefit pension schemes into superfund entities so that they benefit from improved funding, economies of scale and better governance will provide more security for members of some pension schemes.

Advantages of superfund schemes are they:

• protect savers through a capital buffer, which will provide greater security by reducing the risks associated with future employer insolvencies
• provide an alternative way for employers in certain circumstances to separate themselves from legacy pension arrangements by moving closed pension schemes into a superfund, freeing them to focus on the day-to-day running of their business
• improve the likelihood of members’ benefits being paid in full
• enable access to a wider and potentially more innovative mix of investment opportunities

This consultation seeks views on a new legislative framework for authorising and regulating defined benefit superfund consolidation schemes as described in Protecting defined benefit pension schemes, published in March 2018. It gives an indication of the government’s policy intentions and likely focus of the legislation.

We also published a consultation on Delivering collective defined contribution pension schemes on 6 November 2018.

Documents

Consolidation of defined benefit pension schemes

HTML

Consolidation of defined benefit pension schemes

Ref: ISBN: 978-1-78659-116-6

PDF, 688 KB, 68 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 7 December 2018
Last updated 17 July 2023 + show all updates

1. 17 July 2023

   Added HTML version of government response to consultation on: Consolidation of defined benefit pension schemes.

2. 11 July 2023

   Published the government response to the consultation.

3. 7 December 2018

   First published.