The Pensions and Lifetime Savings Association (PLSA) has published its response to the TPR New code of practice consultation.
Nigel Peaple, Director of Policy and Advocacy, PLSA, said: “We thank TPR for its engagement with industry over the consultation period, which it has communicated very well to our members via our conferences and webinars.
“Amongst our members there are high levels of support for the Single Code of Practice, with 72% supportive of it, and only 2% opposed.
“From a practical standpoint, we ask that TPR make it clear where they have made changes to requirements – or added new ones. This will help achieve higher levels of compliance and reduce the administrative burden on schemes, something of particular value to smaller schemes.
“The application of the Code to the Local Government Pension Scheme is often not clear and we ask TPR to provide additional guidance and support to funds on this issue.
“One of the other key areas of concern across our membership is the introduction of new phrasing that interprets the legal requirement to invest predominantly in regulated markets to be 80%. There is nothing in statute that requires this allocation and many of our member pension schemes regard it as arbitrary. Many DB schemes already invest beyond a 20% holding of illiquid assets, in line with generally accepted principles of pension funding. Limiting investment in the way proposed would also make it harder to achieve other Government policy objectives related to responsible investing, climate change and infrastructure.”
The full submission is available via the PLSA website.
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