Could pension scheme members be better off in a Superfund? How can companies and trustees decide?
Pension superfunds offer an opportunity for trustees to fulfil their duties by transferring their scheme to a Superfund, removing it from the employer’s balance sheet in the process. This will only be appropriate if all parties are comfortable that the position of members is improved by the transfer, and that the alternative of buying-out with an insurer is very unlikely to be viable for the foreseeable future.
Here we introduce the nuts and bolts of how trustees and employers can go about assessing whether or not their scheme is suitable for a transfer to a Superfund. This will typically require a detailed analysis of future investment, funding and covenant scenarios.
LCP have developed a sophisticated model which can provide the analysis you need to make a clear and informed decision.
- What is a Superfund?
- Is a Superfund appropriate for my schemes?
- What are the key differences between the two current commercial Superfunds?
- How can LCP’s Covenant Comparator tool help assess the suitability of a Superfund?
- How would you achieve a transaction with a Superfund?