PLSA policy board sets inaugural priorities; addresses consolidation challenges
The Pensions and Lifetime Savings Association's (PLSA) policy board has agreed a four-year plan focusing on consolidation, adequate contributions, effective management and well-run schemes.
The programme of work, announced yesterday (3 April), is designed to help people "achieve a better retirement income".
The policy board, set up in October 2018, has also created four sub-committees to implement the work programme and take forward delegated policy work.
The committees, formed of between eight and 10 members, will represent the defined benefit (DB), defined contribution (DC), Local Government Pension Scheme (LGPS), and master trust sectors of the industry.
They will also support the PLSA in representing policy positions to government, regulators and stakeholders, and sit on industry working groups.
Policy board chairwoman Emma Douglas commented: "We have an ambitious policy agenda to ensure the UK regime for retirement savings delivers a better income for everyone.
"Drawing on the wide expertise of the PLSA's policy board, we have identified four key priority topics… with some actions for government and some for the industry."
The focus on consolidation recognises the "need to increase the quality of workplace pension schemes" and the trade body is welcoming the current trend towards consolidation.
The association's DB taskforce published a final report in September 2017 extolling the virtues of DB superfunds, estimating they could increase security for 11 million members.
With a focus on adequacy, the PLSA plans to support an increase in AE contributions to 12% by 2030, as well as introducing Pensions Quality Mark standards' to reward well-run schemes that offer 12% contributions.
In terms of effective engagement, work in this area will include developing national retirement income targets so the industry can communicate people's likely retirement lifestyles and help them understand the impact of saving decisions.
Additionally, the PLSA's focus on well-run schemes aims to recognise that good governance is essential to delivering good outcomes. This area also covers cost transparency, value for money, sound investments, and stewardship.
PLSA director of policy and research Nigel Peaple said: "These priorities take forward the objectives identified in our 2018 Hitting the Target report for DC schemes and the earlier work of the PLSA DB taskforce."
He added: "It also involves addressing the challenges and opportunities created by the growth of savers in our master trust members, and by the effects on our LGPS members of the new asset pools."
The PLSA has also formed additional reference groups to brief members and provide a virtual forum for them to share experiences via email and surveys.
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