Our response to the Autumn Statement

We welcome the government’s commitment to establishing a public sector consolidator and their recognition that we'd be well placed to take on this additional and separate role. We’ll work with government and industry on designing this new vehicle in the coming months, and remain focused on delivering for our existing members and levy payers.  

The Chancellor’s Autumn Statement yesterday laid out, among other measures, proposed pension fund reforms. One of these was that the government will support “opening the PPF as an investment vehicle for smaller defined benefit pensions”.  

Taking on an additional and separate function 

Alongside this, the Department for Work and Pensions (DWP) published the government’s response to its call for evidence on Options for Defined Benefit schemes. This call for evidence came as part of the Chancellor’s Mansion House Reforms, which among other options sought views on the potential role of a public sector consolidator, and whether the PPF was an appropriate choice to operate any new vehicle.  

We welcome the government’s commitment in their response to establishing a public sector consolidator by 2026 and their recognition that we have the necessary skills and experience to take on this separate function in addition to our current role.  

Complementing commercial solutions 

We believe a public sector consolidator can help deliver the government’s objectives – securing the best outcomes for members, preserving a strong and diversified gilt market, and increasing investment in productive assets (i.e. investments which help support the wider British economy and businesses).    

A public sector consolidator would complement existing commercial solutions by working alongside the insurance market and commercial consolidators. The government’s response to the call for evidence indicated a public sector consolidator will be aimed at defined benefit schemes that are unattractive to commercial providers, and that it will be for schemes to choose to opt in. 

We remain committed to delivering for members and levy payers 

We’ll work closely with DWP and industry as the detailed design of the public sector consolidator is developed over the coming months, as well as other potential measures which could impact, or involve, the PPF.  

We’ll also continue to be completely committed to our existing function and maintaining our customer service levels for our current members and levy payers.