Context
Guy Opperman, the then pensions Minister, stated that green-lighting defined benefit pension superfunds was his greatest achievement during lockdown. The Bank of England Governor later warned that superfunds could be a risk to financial stability.
Question
The unelected Governor of the Bank of England unhelpfully intervened and said that superfunds would be a risk to financial stability, resulting in the Pensions Regulator authorising only one pension superfund. Can the Minister tell us what exactly he is going to get the Pensions Regulator to do differently in order to support economic growth?
Answer from Torsten Bell (Parliamentary Secretary to the Treasury)
The Pensions Regulator recognises its important role in supporting growth; it has statutory duties not just to protect savers but also to minimise the impact on employer growth. Superfunds have an important role in ensuring larger pension funds that can invest in a wider range of assets. Currently, the Pensions Regulator has authorised one superfund on an interim basis, and we will take measures in the Pension Schemes Bill to make further progress.
Not addressed: The Minister did not provide specific actions or timelines for changes beyond mentioning that they would take measures in the Pension Schemes Bill.
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