Commenting on the announcement by The Pensions Regulator on 'superfunds', Matt Cooper, Head of Defined Benefit Consolidation in the Pensions team at PwC, commented:
"We understand that both providers have significant pipelines of schemes and we could see several £billion of pension liabilities transferred in the next 18 months, assuming the economics implied by the regulatory requirements can be supported by providers' business models. We know from discussions with our clients that there is significant interest in pursuing this route.
"Given the current economic challenges brought about by the Covid-19 crisis, we expect more and more employers and trustees to look to superfund consolidators as offering a better covenant than the existing employer for their pension liabilities."
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