Pensions Aspects Magazine

Published bi-monthly and brought to you by the PMI, this leading UK pensions magazine offers expert insights, policy updates, and practical guidance on the issues shaping your profession. Each edition helps you stay informed and ahead, with the latest on regulation, governance, diversity, digital innovation, and more, plus member updates, exam news, and exclusive interviews.

Accessing future cash flow to understand the journey plan
15 September 2021

Accessing future cash flow to understand the journey plan

Ultimately, future cash flows of the sponsor pay pension contributions. A largely historical approach to covenant assessment, focused on past performance and the balance sheet, can misjudge the level of covenant support available or even misrepresent the risks that a scheme faces. A forward-looking approach is an essential part of a robust covenant assessment framework.

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To what extent will an increased focus on ESG (Environmental, Social, and Governance) improve member outcomes?
15 September 2021

To what extent will an increased focus on ESG (Environmental, Social, and Governance) improve member outcomes?

Changes made in 2018 to the Occupational Pension Schemes (Investment) Regulations 2005 required that pension scheme trustees outline their ESG policy in their Statement of Investment Principles (‘SIP’). The European Union later introduced the Shareholder Rights Directive II which has necessitated further disclosures since October 2020¹. Pension schemes are not the only entities affected by ESG reporting as companies are required to make reports in accordance with the Taskforce for Climate Related Financial Disclosures (‘TCFD’). The Financial Reporting Council (‘FRC’) also recommends that public interest entities report against the disclosures of the Sustainability Accounting Standards Board (‘SASB’)². It is clear that there is an increased focus on ESG principles. Appropriately implemented, ESG policies can improve outcomes for members - both as employees and as pension scheme beneficiaries.

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Pensions Aspects July/Aug 2021
16 July 2021

Pensions Aspects July/Aug 2021

Judgement day. Read the latest issue policy and challenges. 

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A stronger Pensions Regulator
16 July 2021

A stronger Pensions Regulator

The Pension Schemes Act 2021 (the Act) brought with it a raft of new offences, both criminal and civil, as well as extended informationgathering and interviewing powers, to enable The Pensions Regulator (TPR) to fulfil its “clearer, quicker, and tougher” mantra.

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A trustee effectiveness review: a tool to help trustees
16 July 2021

A trustee effectiveness review: a tool to help trustees

We know that not everyone finds the idea of a trustee effectiveness review appealing. Many feel such a review will take up time that could be better spent dealing with scheme issues, and the prospect of a list of improvements for busy trustees is not attractive. However, a periodic review of how trustees are operating collectively will be time well-invested and is an essential requirement for a well-run scheme.

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A roadmap to responsible investing
16 July 2021

A roadmap to responsible investing

In an ever-changing landscape for institutional investors, there is an industry-wide acknowledgement of the increasingly important role that responsible investing has to play in managing a well-diversified portfolio. More and more fiduciaries recognise that the incorporation of environmental, social and governance (ESG) risk factors can materially impact portfolio risk and return, as well as help bring the portfolio into closer alignment with an organisation’s mission and broader goals. With that, investors want to ensure they are investing responsibly and integrating ESG factors into their portfolios appropriately. The difficulty for some that are at the start of this journey lies in knowing how and where to begin.

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