The Pensions Regulator has amended its DB superfunds guidance three years after publishing its original guidance to update it based on changes in the last three years.

In a blog post it said it has widened the remit of the guidance “to make sure that our superfund regime remains fit for purpose.”

Louise Davey, TPR's director of regulatory policy, analysis and advice, said: "When we published our guidance, we committed to review the issue of profit extraction within three years. But many things have changed in the last few years.

“The industry has had to deal with the longer-term market impacts of Covid-19 and material changes in yields and inflation. As a result, the superfund market is yet to really get going.

"Given the wider economic challenges, and with more clarity on the direction for the longer-term regime and our learnings from working on the assessment process since 2020, we believed it was right that we widened the remit for our guidance review to make sure that our superfund regime remains fit for purpose."

The key areas where TPR’s guidance has been amended are: 

• Changes to ease the way for schemes transferring to a superfund.
• Changes to TPR’s funding expectations.
• Signalling a change in its position on profit extraction.
• Greater clarity on some of its expectations for the assessment process. 

Ms Davey said: “The potential for superfunds to operate alongside other risk transfer and management options offers the potential for a diverse marketplace. We know that superfunds are just part of innovative developments in the DB marketplace and later this year we will publish guidance focussed on other arrangements as well. 

“There is more to do here but we are committed to enable innovation in DB which puts better saver outcomes at its heart.”

Read the TPR bog here