Balance of Power?
Who actually runs Pension Schemes
- Trustees, Employers or Advisors ..?
Included in the day are sessions with Richard Harrington
Richard Harrington MP: Thoughts after four months as Minister include:
· Auto enrolment is going well, and is here to stay; “the hard stuff” is coming.
· He sympathises with consumers: he did not have a great deal of knowledge about his own pension arrangements.
· The new Pension Schemes Bill gives greater consumer protection for master trusts, together with a cap on exit fees. Master trusts will be required to demonstrate that they meet five key criteria.
· “Is the DB industry too fragmented? Maybe the Government needs to nudge it?”
· He does not understand why business does not think that DB liability is their liability. He does not buy any conflict between dividends and pensions.
· He is unhappy about having two separate guidance bodies split between debt and pensions. The same customer uses both.
He is against the idea of a Pensions Commission.
Michelle Cracknell has set out how pension scheme members view matters:
· “Interest in pensions has increased, but there is still much work that needs to be done to ensure that people are equipped to take responsibility for ensuring that they have sufficient income in retirement. People need to be helped to move from being recipients of pensions to consumers of pensions.”
“We need to encourage people to be more proactive throughout their lives b y reminding them of their pension position, and prompting them to seek guidance.”
Here are some of the changes that Lesley Williams sees:
· “It's been a year of political and economic uncertainty...The direct and indirect impacts of the decision to leave the European Union meant reports of record high deficits. And with BHS and Tata on the front pages this year, the whole country has seen how large defined benefit (DB) scheme issues can become corporate issues and issues of national importance.”
· “Not all, but many smaller schemes and employers struggle with the level of governance needed to properly run pension schemes. And not all, but many trustees lack the skills and resources to do the best for their members.”
“Another relic of the 20C is that trustee boards, independent governance committees and pensions management generally are still heavily white, middle class and male dominated, so diversity will be the theme of the 2017 PLSA investment conference.”
Look forward to seeing you.