The PMI's Helen Forrest Hall and the SPP's Sophia Singleton welcomed the minister's announcement
The Pensions Management Institute (PMI) and Society of Pension Professionals (SPP) has backed a ministerial commitment to limit mandation powers in the Pension Schemes Bill.
Speaking at the Pensions UK Investment Conference today (11 March), pensions minister Torsten Bell confirmed the government would use the reserve mandation power in the Pension Schemes Bill for implementing the Mansion House Accord goals "and nothing else".
He added the government would ensure that is put beyond doubt – noting that, as the legislation enters its final phases in the House of Lords, it will ensure it is clear that the reserve power is only for this one purpose."
The Pension Schemes Bill contains a time-limited power enabling government to compel defined contribution (DC) pension funds to invest in a certain way if they failed to do so voluntarily.
This proposal generated significant concern across the industry due to its potential implications for fiduciary duty – with many across the industry opposing the power and calling for it to be removed or for it to be explicitly aligned line with the Mansion House Accord.
PMI chief strategy officer Helen Forrest Hall said: "We welcome the government's decision to limit the mandation clause. This is a positive step that reflects concerns that we and others have consistently raised about its impact on trustees' fiduciary duty. We look forward to reviewing the amendment in detail as the Bill progresses."
SPP president Sophia Singleton added: "We are pleased that our longstanding campaign to get the mandation power brought into line with the Mansion House Accord has proved successful and that the minister has listened to the industry on this vitally important issue."
