Options for Defined Benefit (DB) Pension Schemes

We are formulating our response to the government’s consultation on options for DB schemes. We would appreciate a few moments of your time to complete some or all our survey questions below. The survey will close on 28 March 2024.

Name (optional)

Organisation/Pension Scheme (optional)

Are you a:

Trustee
Sponsoring Employer
Adviser
Other (please specify):

If you are involved with a number of occupational pension schemes, please answer the following questions based on a typical scheme in your portfolio.

What is the asset value of your scheme?

Under £10 million
Over £10 million but less than £250 million
Over £250 million but less than £1 billion
£1 billion or more

How many members do you have (actives, deferreds or pensioners)?

0 to 99
100 to 999
1,000 to 4,999
5,000 or more

Is your scheme:

Fully open
Closed to new members
Closed to future accrual

Is your scheme in surplus on a full buyout basis?

Yes – 100% to 104% funded
Yes – 105% to 110% funded
Yes – more than 110% funded
No

If your scheme does not currently permit refund of surplus, would you be interested in an overriding power to refund surplus to:

Would your scheme be likely to change investment strategies as a result of being able to access surplus more easily?

Yes
No
Do not know

Specifically, would your scheme be likely to increase investment in productive finance if it is able to access surplus more easily?

Yes
No
Do not know

Would you be more likely to consider a change of investment strategy/investment in productive finance if there were a PPF underpin (and consequent higher levy) so that the scheme could still enter the PPF in the event of an employer becoming insolvent?

Yes
No
Do not know

Would you consider delaying buyout to try to create a surplus that could then be extracted?

Yes
Yes – if there were a PPF underpin
No

The PPF previously proposed that a scheme should pay a “super” levy of 0.6% of scheme liabilities in order to benefit from a 100% PPF underpin. Do you consider this to be set at the right level in order to encourage a change in investment strategy (as a result of being able to access surplus more easily)?

Yes
No – it should be lower
No – there should be no increase in levy amount

Do you have any comments on the amount of a “super” levy?

Would you be interested in using a public sector consolidator (PSC)? Key points of the proposed PSC are:

Standardised benefits (each member would still receive the full actuarial value of their benefits)

Pooled funds of schemes transferred to the PSC (but legally separate from the PPF)

The link between employer and pension scheme would be severed

If the scheme is in deficit, the employer would enter a fixed repayment schedule – once paid, the employer would have no further liability

Do you have any comments?

Has your scheme faced any challenges in trying to buyout with an insurer?

If you have any other comments or observations that you would like us to include in our response to consultation, please leave them here.

If you would like to receive a copy of our response to consultation, please leave your email address below.

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Options for Defined Benefit (DB) Pension Schemes – Survey