TPT responds to the Government’s response to the Pensions Investment Review

Commenting on the publication of the Government’s response to the Pensions Investment Review, David Lane, Chief Executive Officer at TPT Retirement Solutions, said:

“We support the Government’s ambition for a growing, innovative UK economy and welcome the clarity offered in its response to its Pension Investment Review. It’s particularly important that the Government has acknowledged factors that will enable more pension scheme investment in the UK, such as the need to focus on long-term value over cost, and the importance of a robust pipeline of investable opportunities.

“The Pensions Investment Review represents a signal of intent, laying the foundations for a more coherent and sustainable pensions system, focused on improving outcomes for members. Placing consolidation at the heart of its approach is pragmatic and sensible. We believe consolidation is central to delivering better outcomes for savers, whether through master trusts, superfunds, or LGPS pooling. It is particularly pleasing that the Government has listened to the concerns of the pension industry. In extending the time frame for schemes to achieve its desired scale, the Government has sensibly given the industry necessary flexibility to reach this target in an appropriate fashion.

“We recognise that the option to mandate private markets investment has been reserved, but we hope it won’t be necessary. The recently agreed Mansion House Accord should help deliver the Government’s private markets and UK allocation goals through industry-led collaboration. The challenges of a mandated approach would be significant—raising legal concerns around fiduciary duty and potentially distorting pricing in ways that could reduce member outcomes. A voluntary, value-led approach remains the most sustainable path forward.

“We look forward to working closely with the Department for Work and Pensions and the wider industry to implement and refine the proposed reforms through further engagement, in the run up to and after the much-anticipated Pensions Bill.”