View more on these topics

Union sceptical of emerging UK pension superfunds

The Trades Union Congress has questioned the emergence of pension superfunds that aim to offer employers a cheaper way of providing pensions.

Usually a firm wanting to offload its scheme pays an insurer to take on the risk but organisations are entering the market that want to do this service more cheaply.

In March a defined benefit consolidator called Pension SuperFund, run by former Pension Protection Fund chief executive Alan Rubenstein, was launched.

It intendeds to acquire about £20bn of business over the following five years from companies wanting to remove pension liabilities from their books.

But the TUC is worried the superfunds could pool assets from DB schemes in a way that could be detrimental to members.

Speaking to the Financial Times, TUC policy officer Tim Sharp says: “There is a good case for consolidation in cases where schemes are poorly governed and funded. But these consolidation funds are targeting the better funded schemes with good sponsoring employers.”

He adds: “We are hearing a lot of talk about how these consolidators can help employers but not a lot about consulting members over whether cutting a link with an employer and moving into one of these untested vehicles is in their best interests.”

Recommended

John Lawson: DC or CDC? That is the question

Collective defined contribution schemes are back on the table. And this time, it looks like for real. At last, there is demand, albeit from just one employer, Royal Mail. The work and pensions select committee is running an inquiry and the government also appears to be taking it seriously. Unfortunately, a lot of the old […]

Malcolm McLean: Does CDC have a future in the UK?

The recent enquiry by the work and pensions select committee has reignited the debate about the future of collective defined contribution schemes. Whether these sort of schemes can be incorporated into the current UK pensions landscape is a moot point. Let’s consider some of the arguments for and against CDC. First of all, it is […]

‘Defined ambition’ pensions back on table with new MP inquiry

The Work and Pensions select committee is launching a new inquiry into defined ambition pension schemes, which were legislated for but not fully implemented in 2015. The inquiry will consider whether collective defined contribution arrangements can give better outcomes than traditional DC plans, how they might be governed and whether seriously underfunded defined benefit schemes […]

Sanlam looks to hit 1,000 advisers by 2020

Sanlam UK has revealed ambitious plans to grow to 1,000 advisers over the next two years. Speaking at the Money Marketing Interactive conference yeasterday, Sanlam UK group chief executive Jonathan Polin said the wealth manager is also planning to invest directly into stocks and bonds in an attempt to cut costs. The vertically integrated firm currently […]

Investment

Latin America’s dramatic transformation

By Thomas Smith, Head of Latin American Equities, Neptune The investment case for Latin American equities has transformed dramatically over the past 18 months and, looking forward, it has two distinct drivers. In the short term, the region is benefiting from a cyclical economic recovery as two of the larger economies exit recession and the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment