The DB Taskforce was set up by the PLSA in March 2016 to undertake a review of the challenges currently facing funded defined benefit (DB) pension schemes, and make recommendations to Government which will (a) help ensure the sustainability of open DB schemes and (b) help closed DB schemes run off more efficiently and ultimately secure member benefits. The terms of reference for the Taskforce can be found here.
In October 2016 the Taskforce published its Interim Report. This report shows that, on the whole, DB pension schemes are under severe pressure and without change the likely outcome will be hardship for members or sponsors.
Second report: The Case for Consolidation
The second report of the Taskforce, ‘The Case for Consolidation’ , examines four models of consolidation, and argues that full merger into a new type of ‘Superfund’ could deliver materially better outcomes for members, reducing risks to their benefits and the risks of their sponsor defaulting.
In its next report, to be published later this year, the Taskforce will develop proposals for the measures that the Government would need to introduce in order to break through the cultural practical and legislative barriers that are restricting access to the benefits of consolidation today.
If you are interested in getting involved with the project then please contact DBTaskforce@plsa.co.uk.
About The Taskforce
The Taskforce is led by Ashok Gupta , co-deputy chair of the Bank of England’s enquiry into pro-cyclical al investment by pension funds and insurance companies. He is joined by experts from across the industry and academia.
Ashok Gupta (Chair), Duncan Buchanan, Frank Johnson, Paul Johnson, Jackie Peel, Tim Sharp, Stephen Soper, Robert Talbut, Paul Trickett, Kevin Wesbroom, Lesley Williams.