UK - Consultants are urging the government to exclude money purchase schemes from any prescription arising out of the Myners Report.
Hewitt Bacon & Woodrow investment adviser Anthony Ashton said that he believed ministers – and particularly those at the Treasury – were far more interested in changing the behaviour of large final salary schemes, than small defined benefit or defined contribution schemes.
“The government should be clear that what it really wants to do is change the behaviour of large pools of assets.
“Small DB schemes or DC schemes just do not have large pools of assets and the government should not be foisting on them a significant compliance burden when these schemes have little resources.”
Ashton’s views come in the wake of the department for work and pensions’ The Myners’ Principles and Occupational Pension Schemes, Volume 2.
The DWP report notes that large schemes had made the greatest progress in meeting the principles identified by former Gartmore chief Paul Myners and that generally DC schemes have made less progress than DB schemes.
The report also says the areas covered by the principles that showed the least progress were in shareholder activism and in the performance measurement of investment consultants and trustees.
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A nationwide survey of committee and local pension board members of the Local Government Pension Scheme has revealed high levels of confidence in all areas of their responsibility.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.