The Pension SuperFund Trustees (“PSF”) today announce the appointment of Margaret Snowdon to the Board with effect from 1 December 2020.
Margaret is a vastly experienced pensions professional with over 40 years working in the financial services industry with a keen focus on the pensions landscape throughout.
Her recent roles have included being member of the Phoenix Group IGC and With-Profits Committees, the ReAssure Fairness Committee and a NED of XPS Pensions Group. In addition, she has been a NED on the Pensions Regulator Board [for four years up to May 2020].
Margaret is also a Fellow and former Vice President of the Pensions Management Institute and while involved with PMI, was instrumental in the development of pensions professional training and examinations. She also acted as a subject examiner for the PMI for several years. She leads on scams prevention with her chairmanship of the Pension Scams Industry Group.
Over the years, her clients have included several large pension schemes where she worked effectively alongside most independent trustee firms, actuaries, consultants and administrators, helping clients to select the right partner for their needs and to get the best outcomes.
The news comes as the PSF recently welcomed new TPR guidance for Trustees and employers considering DB superfund transfer, please read this response in full via https://thepensionsuperfund.com/the-pension-superfund-welcomes-new-tpr-guidance-for-trustees-and-employers-considering-db-superfund-transfer/.
Richard Wohanka, Chairman of Board of Trustees for The Pension SuperFund, commented:
“We are delighted to welcome Margaret to the Board of Trustees at the Pension SuperFund. Her track record is hugely impressive in both pensions and financial services, and this appointment further strengthens a high-class roster of pension professionals to ensure first-class leadership and governance for what is a very exciting time for the superfunds landscape.”
Margaret Snowdon, member of the Board of Trustees for The Pension SuperFund, commented:
“I am delighted to join the Pension SuperFund and look forward to helping ensure that DB consolidation is a success, delivering better member outcomes, while removing a burden from employers.”
Notes for Editors:
How Does The Pension SuperFund work?
The Pension SuperFund (“PSF”) consolidates UK occupational defined benefit pension funds by accepting TPR cleared bulk transfers of all pension assets and their various contractual liabilities into an existing HMRC registered and PPF eligible arrangement topped up, as necessary, with a final tax-deductible sponsor contribution to satisfy PSF’s conservative “self-sufficiency” funding basis.
That sponsor contribution can be in the form of what might otherwise be deemed employer-related investments as there is no link post transfer. As PSF novate all existing asset management and administration arrangements, not only is PSF’s transfer price more affordable than buyout, the transition costs are much lower too.
The covenant which the operating sponsor currently provides to the scheme, and its obligation to make future contributions to it, ends and is replaced by an asset-backed covenant supported by third-party investors known as the capital buffer fund.
The scheme trustees hand over their responsibilities to PSF’s independent, professional trustee board. In doing so the ceding trustees will be fulfilling their fiduciary duties by improving the scheme’s funding level and financial covenant to secure members’ benefits. This transfer also enhances the governance of the scheme.
The Pension SuperFund generates the economies of scale by merging a ceding scheme’s assets and liabilities alongside those of other schemes which have entered the SuperFund. Ceding scheme members become The SuperFund members and PSF pay their agreed contractual benefits in full in perpetuity.
Uniquely among consolidators, insurers and other pension arrangements, The Pension SuperFund shares any surplus capital with members by way of a periodic defined contribution bonuses (or taxable cash payments if allowances have been reached). This surplus will accrue in the capital buffer until distributions are permitted by The Pensions Regulator.
PSF expects that the increasingly onerous governance demands being placed on DB scheme trustees, and the uncertainty around any sponsor’s ability to make future contributions, make the prospect of moving to The Pension SuperFund highly attractive.
As well as bulk transfers, PSF’s model enables them to consider scheme rescue and PPF+ cases using Flexible Apportionment Arrangements and transfers with member consent mechanisms. PSF can also consider partial transfers if a sponsor simply wants to reduce rather than remove its exposure.