IGG Urges Pension Stability Under Burnham Government

Independent Governance Group (IGG), a leading provider of professional pensions trusteeship, governance and communications services, has set out its priorities for the new Burnham government.

After years of cross-party consensus and strong momentum following the Mansion House reforms and Pensions Schemes Act, IGG asks the new Government to consider the following in the years to come:

• Pensions thrive with stability: There is a huge volume of much needed change in the pipeline, as laid out in the recent roadmap. For now, the best path of action is to see this through and provide certainty for schemes, members and pensions professionals.
• Prioritise adequacy and equity: We encourage the Government to respond quickly to the Pension Commission recommendations when they come, and to put a solid plan in place to action its outcomes. Adequacy is a long talked about yet fundamentally unaddressed problem. It should be a key priority.
• Create growth via access: Instead of using heavy handed regulation to dictate allocations, channel efforts into creating a stronger pipeline of high quality, investable opportunities for pension funds.
• Build on the consensus: Pensions are one of the few segments of our increasingly divided political world where we see genuine cross-party consensus. Only when acting collectively can we continue to tackle issues like adequacy and make the tough choices needed to ensure long-term viability of our pensions ecosystem.

Louise Davey, Head of Policy and External Affairs at IGG, said:

“The pensions sector is making progress through multiple avenues – surpluses are strong, professionalised governance is promoting higher standards, and auto enrolment has laid the foundations for further progress in DC.

“Changes in government can threaten this careful balance. We’ve already seen some political overstepping with the drive for mandation, and we encourage the government to continue working with the sector to drive better outcomes for members, corporates and wider society.”

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