08.02.2024
On 23 February 2024, the Department for Work and Pensions (DWP) published its consultation, ‘Options for DB schemes.' This is a consultation on aspects of private sector Defined Benefit schemes, which seeks stakeholder feedback for the future pensions market.
Today, we've published our initial views on how a public sector consolidator could be structured. We’ve done that in response to the questions posed in the consultation document.
Although it’s not a complete or definitive solution, we hope that sharing our early thinking will support an effective debate that generates views and challenges, and help us to refine or change our proposals.
Similar to other organisations who care about pension provision, we’ll continue to think how else we support with solutions to challenges in the sector.
We’re keen to work collaboratively with stakeholders to develop the proposition over the course of the consultation period. You can send us your thoughts by emailing us at [email protected].
Our Interim CEO, Katherine Easter, said when the consultation was published, “We welcome DWP’s consultation and look forward to working collaboratively with DWP and industry to establish the best design for a public sector consolidator that delivers the government’s objectives."
"The proposed consolidator would maintain the security of members’ benefits, give more choice to schemes and, dependent on scale, invest materially more in assets which support the wider UK economy and UK gilt market.
"Given the £1.4tr scale of the DB sector, we believe the public consolidator can work alongside existing commercial providers, supporting a healthy market by providing an attractive option for schemes unable to access existing solutions on reasonable terms.
"We plan to engage with stakeholders both on the detailed design of the public consolidator and further viable approaches which use the PPF’s skills and capabilities; we stand ready to support the government achieve its objectives in any way we can.”
