Members of occupational defined contribution (DC) pension schemes may be missing
out on potential benefits of long-term investments in ventures
such as small firms, housing, green energy and sustainable
development, according to the Minister for Pensions.
Assets in occupational DC schemes have almost tripled
to £60 billion since the start of 2011 and have been boosted by
the introduction of automatic enrolment into workplace pensions.
– speaking at the Trade Union
Congress ‘Fit for the future’ pensions conference – revealed
changes are being explored that would give more than 10 million
members of certain pension schemes access to more diverse,
innovative investments.
The government is consulting on the reforms to
occupational DC pensions – a type of
pension where future benefits depend heavily on earnings from
investments.
Larger DC pension schemes – for
example, those with 5,000 or more members – could be required to
publish their policies and report every year on how much they
allocate to the types of investment the government is keen to
encourage.
, Minister for Pensions and
Financial Inclusion, said:
Pension schemes could consider opportunities for more
innovative, long-term investment offering members the potential
for better returns – and the UK economy billions of pounds of
funding that can boost jobs, productivity and growth.
We can do more to attract new investment into important sectors
of the economy which would boost employment and help to build
stronger, more sustainable communities. At the same time, this
approach would give savers more pride in their pensions while
delivering good returns.
Ministers are also seeking views on proposals which would
encourage smaller DC schemes to merge and
measures to allow performance fees within the existing charge
cap.
