The Pensions Regulator has today published the revised superfund guidance, three years since the interim guidance on setting up and running a DB superfund was last updated.  

Commenting on this guidance, Gordon Watchorn, LCP Partner and Head of Corporate Consulting, said: “A combination of relaxed entry requirements in the guidance and more competitive pricing opens the door to more superfund activity. Pension schemes can now start to forge ahead, knowing they have the information needed to make informed decisions about the options for their scheme and with the comfort that the Regulator is doing all it can to allow the market to develop and thrive. Sponsors need to revisit their pension strategy to ensure the next phase of the journey is optimal based on all options available.” 

“Sponsors and trustees should now have comfort in the viability of these consolidator options, and existing consolidators in the market may see interest turn into completed transactions. The guidance could also pave the way for a number of new providers to make their entrance into the market, which would be great for schemes considering this option.” 

Dev Gandhi, Senior Consultant at LCP, said: “This guidance isn’t just about adding more options for sponsors and schemes; it’s about enhancing the quality of those options. Pension schemes now have a richer tapestry of choices that can lead to better outcomes for their members”. 

“Schemes are almost spoilt for choice when it comes to endgame planning. With the improvement in pricing, working out which end game is right for a scheme is now more interesting and relevant to a wider audience. This means it’s imperative that schemes get the right advice to help navigate what could soon be a burgeoning market.”