The Pensions and Lifetime Savings Association (PLSA) has today commented on the publication of The Department for Business, Energy & Industrial Strategy’s (BEIS) new consultation: Insolvency and corporate governance. This consultation aims to improve the UK’s corporate governance framework and ensure the highest standards of behaviour in those who lead and control companies in, or approaching, insolvency. As such this is an essential counterpart to the Department for Work and Pensions’ (DWP) recent defined benefit (DB) White Paper.
Responding to the consultation, Caroline Escott, Policy Lead: Investment and Defined Benefit, said:
“In light of recent events, such as the failures of BHS and Carillion, we are glad to see the Government looking at the relationship between good corporate governance and good outcomes for pension scheme members. This is evident both in today’s consultation from the BEIS and also from the DWP’s recent defined benefit White Paper. It is imperative that the interests of scheme members remain at the forefront of a company’s considerations in the case of insolvency or restructuring.
“As long-term investors, with responsibility for £2.2 trillion1 of savers’ assets, pension funds have a clear stewardship role to play in ensuring companies act in the best long-term interests of their stakeholders. This is important to ensure not only that companies produce better, long-term, returns for pension savers but also that their business activities have a broader positive impact on the economy and society. Good stewardship requires investors and their managers to proactively engage with the companies they are invested in on a range of issues, including how executive remuneration is aligned with the long-term success of a company.
“We will be working with our members to respond to the consultation and continuing to work with the BEIS on this issue going forward.”
NOTES TO EDITORS
1 Investment Association, Asset Management in the UK 2016-17: The Investment Association Survey
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]
Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]