Rory Murphy: A call for a permanent, independent pensions commission

Body would assess the pensions system and make policy recommendations to ministers

Jonathan Stapleton
clock • 2 min read
Rory Murphy: Pensions have long term outlooks that can stretch decades into the future
Image:

Rory Murphy: Pensions have long term outlooks that can stretch decades into the future

The establishment of a permanent, independent Pensions Commission would ensure the interests of pension funds and their members are “front and centre” of ministers’ minds, Rory Murphy says.

The chair of trustees at the Merchant Navy Officers Pension Fund (MNOPF) has long supported the establishment of an independent commission – writing an article setting out the case for a permanent pensions commission for Professional Pensions in April.

Speaking to PP as part of the PP Pensions Commission, which is bringing together industry opinion and ideas on the future of pensions to send to the new government, Murphy said an independent commission could help resolve any "occasional disconnects" between the interests of ministers and scheme members.

Murphy said: "The interests of ministers and the interests of pension fund members frequently coincide but there are, inevitably, occasional disconnects.

"Pensions have long term outlooks that can stretch decades into the future. Ministers' priorities are ultimately (and understandably) fixed around the electoral cycle. As a result, pensions policy can, however well intentioned, be reactive (addressing problems that should have been prevented), and even counter-productive."

He explained: "A permanent, independent pensions commission would ensure that the longer-term interests of pension funds and their members are kept front and centre of ministers' field of vision.

"Such a body, made up of representatives from the pensions industry, employers, members, trade unions, academics and voluntary organisations, would provide an ongoing assessment of the strengths and weaknesses of the pensions system. It would be able to make policy recommendations to ministers, who would remain in charge of implementing policy but who would be required to publish their response to the commission's recommendations."

Murphy added: "This approach would not curtail the powers of government to implement pensions policy. It would, however, ensure that policy is aligned as closely as possible to the long-term interests of pension funds and their members, leading to better outcomes for all."

 

This article was published as part of Professional Pensions' PP Pensions Commission – which is bringing together industry opinion and ideas on the future of pensions to send to the new government

More on Law and Regulation

TPO orders trustees to repay more than £5m to members of three schemes

TPO orders trustees to repay more than £5m to members of three schemes

Investigation finds scheme trustees had engaged in pension liberation arrangement

Martin Richmond
clock 29 November 2024 • 2 min read
SPP: Build it and they will come? Considering the case for multi-employer CDC

SPP: Build it and they will come? Considering the case for multi-employer CDC

John Wilson asks if sponsoring employers are ready to make the move to CDC

John Wilson
clock 26 November 2024 • 3 min read
Budget IHT move a 'major adverse change' to the tax treatment of UK schemes

Budget IHT move a 'major adverse change' to the tax treatment of UK schemes

Fieldfisher calls for clarification over scope of death benefits subject to new regime

Jonathan Stapleton
clock 31 October 2024 • 2 min read
Trustpilot