Over half (53 per cent) of pension professionals believe the proposed public sector consolidator should target small, fully funded schemes, with formal gateway tests similar to those for commercial consolidators, according to research from the Society of Pension Professionals (SPP).

The poll was conducted during an SPP event on the Department for Work and Pensions’ consultation, Options for Defined Benefit (DB) Schemes, which includes proposals to establish a public sector consolidator aimed at schemes unattractive to commercial providers.

The results revealed that almost a quarter (24 per cent) of pension professionals recommended the consolidator should be made available for all interested schemes, including those in deficit.

Meanwhile, 14 per cent said that it should be for small, fully funded schemes without formal gateway tests and 9 per cent believed the consolidator should be available to all fully funded schemes, regardless of size, covenant strength, or the availability of other options.

Commenting on the findings, SPP member, PwC partner, and chair of the event, Atul del Tasso-Dhupelia, said: "This industry polling reveals that most respondents believe a public sector consolidator should only be utilised in clearly defined circumstances with a robust gateway test.

“However, it is also interesting to note that almost a quarter believe a public sector consolidator should be available to all schemes."

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