The UK is unusual in having such a large number of defined benefit (DB) schemes – with around 5,450 funds in existence today – and there is an increasing focus among policymakers and regulators for some of these schemes to consolidate into larger entities in a bid to improve governance, reduce costs and improve the chances that pensions will be paid.
Some schemes will be able to take advantage of improved funding levels to consider an insurance-based approach to consolidation, entering into buyout contracts to settle liabilities.
There are, however, many other schemes where funding is less strong and there is no realistic chance of buyout in the near future. For these schemes, one option could be to consider merging into a specialist ‘superfund’ consolidator in a bid to improve outcomes for members – and a number of such businesses have entered the market.
This webinar will look at this new form of DB consolidation; ask what it is trying to achieve; assess the sort of schemes it may be suitable for and look at what funds need to look at when assessing these models.
In particular, it will answer the following:
- What are DB consolidators and what are they aiming to achieve?
- How does the advisory market view this sort of consolidation option?
- What type of schemes could such a model be suitable for? Conversely, what schemes isn’t it suitable for?
- What should schemes looking to go down this route expect? What is involved in consolidation of this type?
- What’s the market demand for such a solution – is this deliverable today and when are we likely to see the first deals completed?