TPR: Trustees must be “confident” a superfund is right

In June 2020, ahead of proposed government legislation, TPR launched its interim regime for superfunds and other new models. The regime is designed to help give savers confidence in superfunds should their pension be transferred into one in the future.

Well-run superfunds have the potential to offer good outcomes for pension savers and employers, but they will not be the solution for all schemes, the regulator has announced.

It said trustees and employers must carefully consider their options and TPR’s new guidance will help them understand and meet expectations in considering a transfer.

Nicola Parish, TPR’s executive director of frontline regulation, said: “We know that some employers and trustees are keen to explore whether a superfund could provide another option for their DB scheme and for employers allow them to focus on future sustainability. However, while we await government legislation, we are determined to protect savers who may be moved into a superfund by rigorously assessing providers and then supervising them closely.

“Trustees need to ensure they are confident a superfund is the right option for their members, the transaction meets the gateway principles and only consider using a superfund named on the TPR website.”

TPR continues to assess existing superfunds against the expectations set out in its interim regime, including that they are well-governed, run by fit and proper people and are backed by adequate capital. It will only add a superfund to its planned online list of providers once the provider has clearly demonstrated, through robust evidence, that they meet the expectations.