L&G plans product to rival superfunds

Legal & General (L&G) is planning to launch a product aimed at rivalling pension superfunds in the defined benefit scheme consolidation market.

Speaking to Reuters, L&G retirement institutional CEO, Laura Mason, said that the firm was already talking to employers and regulators about its planned product, which would look to provide an option for schemes that may not be able to afford a buyout.

Although L&G did not disclose when the product would launch, Mason said that it would be aimed at pension schemes with a “medium” level of funding.

She also said that L&G’s product would be regulated by the Prudential Regulation Authority, while the regulator the other two DB superfunds will have is still undecided, but it is expected to be The Pensions Regulator.

The firm hopes to challenge DB pension superfunds Clara-Pensions and The Pension SuperFund in the DB consolidation market and said that the L&G product would be similar to the other consolidators, but it would not totally split the pension scheme from its sponsoring employer.

DB consolidators are currently waiting for operating regulations to be completed by the government before they can properly enter the market. Although there is regulation for them to start business, there is yet to be any specific legislation for DB consolidators.

The Pension SuperFund has reportedly agreed two DB consolidation deals, the most recent of which was for £300m of liabilities but is still subject to regulatory approval. Its first deal was approved in May 2019.

    Share Story:

Recent Stories


A changing DC market
In our latest Pensions Age video interview, Aon DC senior partner and head of DC consulting, Ben Roe, speaks to Laura Blows about the latest changes and challenges within the DC sector

Being retirement ready
Gavin Lewis, Head of UK and Ireland Institutional at BlackRock, talks to Francesca Fabrizi about the BlackRock 2024 UK Read on Retirement report, 'Ready or not. How are we feeling about retirement?’

Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs
Podcast: A look at asset-backed securities
Royal London Asset Management head of ABS, Jeremy Deacon, chats about asset-backed securities (ABS) in our latest Pensions Age podcast

Advertisement Advertisement Advertisement