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Report: DB Taskforce - Opportunities for Change

This third report from the Pensions and Lifetime Savings Association's defined benefit (DB) taskforce considers a range of options to help pension schemes facing the challenges of underfunding, weak employer covenants and lack of scale.

Opportunities for change 1

This latest report makes three key recommendations:

  • Introduce a new Chair's statement for DB scheme trustees. This annual statement would demonstrate to the Regulator and members that schemes are operating in line with best practice. 
  • Make it easier to standardise and simplify benefits. The taskforce believes DB schemes would benefit from government action to make it easier to simplify scheme structures while retaining actuarially equivalent benefits for each member. 
  • Exchange covenants for funding. The report proposes new measures to help schemes backed by employers with weaker covenants to benefit from turning the potentially uncertain promise of future support into tangible funding.  In exchange employers would be released from their obligations and schemes transferred into new pension scheme consolidators, called Superfunds.

This latest publication follows on from the taskforce's previous report which examined four models of consolidation.

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