Mansion House proposals a positive set of ambitions

Zoe Alexander, Director of Policy and Advocacy at the PLSA, said: “The UK pension system is the most sophisticated and mature in the world and our schemes play an essential role in supporting the UK economy. Today’s reform proposals are a positive step towards ensuring our system delivers the best value for money for savers.

“Larger pension schemes can help achieve better outcomes for savers through economies of scale, stronger governance, negotiating power and additional resources. We support consolidation where it is in the interests of members and represents value for money.

“These are a positive set of ambitions from the government and for the sector. We look forward to working through the details of the proposals so that they work for savers and schemes.”

LGPS Consolidation

“Local Government Pension Scheme assets (in England and Wales) have already undergone substantial consolidation into Pools with many positive results. The PLSA supports the completion of the transfer of remaining assets and continued development of the LGPS Pool model. However, care must be taken to ensure this is done in a pragmatic way that is not destructive of value nor incurs unnecessary investment losses or costs.

DC schemes

“The PLSA supports ongoing regulatory initiatives aimed at improving value for money and encouraging consolidation in the automatic enrolment market. The level the Government’s ‘minimum size’ for these funds is set at, and the timeline for reaching it, will be central to the success of the proposal.

Fiduciary duty and encouraging investment in UK

“In all cases, and irrespective of the types of pension scheme undergoing reform and consolidation, it is crucial that funds’ fiduciary duty to invest in their members best interests is not compromised.”

“Whether the proposals succeed in converting consolidated pension capital into greater investment in UK assets will depend on there being a pipeline of suitable opportunities for pension funds. The PLSA has made a series of policy and regulatory recommendations, including fiscal incentives, to encourage that to happen.”

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, PR Manager
020 7601 1761 | [email protected]