Source · Select Committees · Work and Pensions Committee
Recommendation 16
16
Accepted
Paragraph: 125
Introduce primary legislation for pension Superfunds after consulting on framework details
Recommendation
TPR sees consolidation, including through Superfunds, as one of the main ways to improve governance, providing advantages of scale in terms of investment and governance. The Government committed to legislating for this in Mansion House as did DWP’s 2023 response to the consultation on pension Superfunds but there was no Bill in the King’s Speech at the start of this parliamentary session. It will be challenging for Superfunds to get off the ground without legislation. The Government should consult on the detailed proposals of the Superfunds legislative framework to protect member benefits and then introduce primary legislation for pension Superfunds as soon as possible.
Government Response Summary
The government committed to introducing provisions for a dedicated authorisation and supervision framework for Superfunds in the forthcoming Pension Schemes Bill, with anticipated regulations to be consulted upon for further details.
Paragraph Reference:
125
Government Response
Accepted
HM Government
Accepted
The Government is introducing provisions for a dedicated authorisation and supervision framework for Superfunds in the forthcoming Pension Schemes Bill, to support this form of consolidation. It is anticipated regulations made under these provisions will provide further details of the regime after they have been consulted upon. Superfunds will increase opportunities for investment in UK businesses and improve member security through better governance. This legislation is being developed in collaboration with key partners across government, regulators, and the pensions industry, and builds on the learning from TPR’s interim regime. The regulatory regime set out in the Pension Schemes Bill will support the growth of Superfund consolidators, while ensuring members’ benefits are protected.