PPF publishes initial design on the structure of a public sector consolidator

Article summary

The Pension Protection Fund (PPF) has published its views on how a public sector consolidator (PSC) might be structured following the Department for Work and Pensions’ (DWP) consultation on ‘Options for Defined Benefit schemes’, which proposes that the design of a PSC should be administered by the Board of the PPF. The PPF’s proposal sets out the structure of a PSC, which aims to provide attractive pricing, terms and member experience to all schemes regardless of size, and explores ways to ensure large numbers of small schemes could be ‘onboarded’ in a time and cost-efficient manner. The PPF considers the key design features, eligibility and the potential market for the PSC, the funding requirements to meet the same level of security as expected of commercial consolidators, the range of benefit structures, how schemes will be onboarded, the treatment of scheme deficit and surplus, and the member experience. The PPF welcomes...