Superfunds won't be ready in 2022, industry says

The majority of this week's Pensions Buzz respondents were doubtful that next year will be the year for a fully-functioning superfund regime, despite The Pensions Regulator (TPR) launching a regime for the market almost 18 months ago.

Just 14% of those surveyed expected superfunds to be fully up and running in the next 12 months, while almost a third (31%) remained unsure.

One positive respondent said: "The structure is in place, and now the industry just needs the will."

Many were hesitant to agree the system would have all back-end systems ready in the near future, however.

"I'm sure back-office administration will be there in 2022, just less sure there will be many takers that could classify superfunds as ‘fully up and running'," said one.

Another added: "Superfunds need much more clarity on the regulatory environment, and then time to build carefully."

One said it was all dependent "on how serious TPR is about getting superfunds up and running" as well as whether or not the regulator could dedicate enough resources for superfunds' approval in addition to ongoing oversight of the system.

A third said they doubted superfunds would take off, adding: "They are only suitable for a tiny minority of schemes."

Consolidators The Pensions Superfund and Clara Pensions told PP they were both set to begin transacting as soon as possible last June, but progress on superfunds has stalled in the 17 months since.

Pensions and financial inclusion minister Guy Opperman last year said the greenlighting of superfunds had been his proudest accomplishment of the pandemic, adding that Covid-19 had removed "any doubt" over their necessity in defined benefit.

Pensions Buzz is conducted each week to anonymously collate Professional Pensions readers' views on key news and trends. Respondents include actuaries, trustees, investment managers, lawyers, pension scheme administrators, and consultants.

To take part, email our research team here.