Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of bulk annuity deals and their impact on pension schemes.

The Bulk Purchase Annuity (BPA) market allows Defined Benefit (DB) pension schemes to guarantee full benefits for their members whilst transferring the risk to insurers. The BPA market enables trustees and scheme sponsors to manage their balance sheets, reduce exposure to market fluctuations and life expectancy increases, and in some cases, wind up the scheme. There has been increased activity in the BPA market due to the improved funding position of DB schemes.

A full buyout is the ultimate goal for many DB pension schemes, but these are decisions for the trustees of a scheme.

The Prudential Regulation Authority (PRA) is responsible for regulating insurance firms and closely monitors the activity and development of the market. The Pensions Regulator (TPR) is responsible for regulating DB pension schemes.