Why employers should consider using superfunds to secure DB benefits

Why employers should consider using superfunds to secure DB benefits

26 Aug 2025

This edition of XPS Express explores how the Defined Benefit (DB) superfund market has evolved over the past 12 months, and why employers should consider DB superfunds as an alternative endgame option for their scheme.

Download the PDF

Key developments: at a glance

• The last year has seen significant developments in the DB superfund market which makes it a viable alternative way of securing member benefits compared to other endgame options.

• Like insurance, a superfund transaction will result in the DB scheme being transferred to a third party, but at a lower cost.

• There are restrictions around which schemes are eligible, but a superfund transaction will result in greater security for members of schemes that are eligible and help employers manage future cashflow requirements.

• The two recent Clara Pensions superfund transactions, which were with ongoing employers, demonstrate that superfunds are a viable alternative option for all sponsors, not just for schemes with weak/insolvent entities.

• The UK Government has expressed their support for this growing market stating “we will ensure this market thrives in its potential”, with the Pension Schemes Bill setting out proposed legislation that will help underpin this aim.

Download the PDF