The rise of the SuperFund

In a recent roundtable event held by Longevity Leaders, Antony Barker, Managing Director at The Pension SuperFund answers a number of questions around our model, the regulatory framework and expectations for the year ahead.

 

“At the request of the government, Superfunds are offering an alternative to move that legacy risk from one closed occupational pension scheme to another ongoing occupational pension scheme. That is largely what our structure is at The Pension Superfund, a tax approved, Pension Protection Fund eligible occupational pension scheme trust. Instead of being supported by an operating company covenant it is supported by a financial covenant in the form of a partnership holding material financial commitments from the former sponsor and new external capital providers, that should ensure members get at least 99% certainty of receiving their promised benefits in full.”

 

“Ultimately, we want to ensure that the risk of providing pensions is not stranded with companies and individuals who are not either skilled, resourced or funded to be able to deal with it. That opportunity is probably best transferred to organizations like those that the three of us offer. No doubt others will come into the market in the future and lead to a superfund industry that is not just members first, but members better.”

 

Read the full discussion here.