Is the balance of power over scheme investment changing?
Trustees control investment strategy. That has always been a key factor in trustee-employer negotiations. Whilst trustees have to consult the employer about the contents of the Statement of Investment Principles (SIP), they do not have to agree investment matters with the employer. In fact, legislation currently states that investment powers cannot be restricted by requiring employer consent. But is that all about to change?
Pension Scheme Reporting in the context of COVID-19
ICAS, ICAEW and PRAG have published new joint guidance on pension scheme reports and financial statements, and related matters in the context of the COVID-19 pandemic.
The COVID-19 driven crash across return-seeking assets and subsequent bounce (at least at the time of writing), have provided a serious test of pension schemes’ investment strategies. The investment performance across Defined Benefit (DB) schemes has been mixed. As with any crisis – albeit we may still be in the early stages of this one – we can take away some useful lessons.
When we look at strategic investment in a pensions setting, then this will obviously guide us down the avenue of product rather than person. However, education is fundamental to development and growth. Education is also a strategic investment in its own right. Simply put, investments in quality education lead to more rapid and sustainable economic growth, and development for both the individual organisation and the economy as a whole. I make no apology for the insistence that education in this form is ‘strategic investment’ but without this as a holistic back note then none of the normal organisational processes would matter or run efficiently.
Earlier this year, the Government and the UK Statistics Authority (the UKSA) launched a consultation on proposals to address the ‘shortcomings’ in the Retail Prices Index (RPI). Responses to the consultation can be submitted until 21 August 2020, following an extension in light of COVID-19.
