14 July 2023

The government has opened the new consultation ‘Pension trustee skills, capability and culture: a call for evidence’, on 11 July 2023. This is a call for evidence to help improve the skills and capability of pension trustees and remove barriers to making effective investment decisions.

This call for evidence aims to deepen the evidence base around trustee capability and other barriers to trustees doing their job in a way which is effective and results in the best outcomes for savers. It is focused on three areas:

  • trustee skills and capability
  • the role of advice
  • barriers to trustee effectiveness.

The Department for Work and Pensions (DWP) and HM Treasury (HMT) are particularly interested in whether trustees have the right knowledge and skills to consider investment in the full breadth of investment opportunities. The DWP and HMT are also interested in trustee capability for Defined Contribution (DC), Defined Benefit (DB), and Collective Defined Contribution (CDC) schemes, as well as hybrid schemes, although some areas in this call for evidence may focus more on one type of scheme than the other. Building the evidence base on the way trustees make decisions and use advice will enable the government to develop a holistic and informed approach to future policy decisions.

Laura Trott, Minister for Pensions and Andrew Griffith MP, Economic Secretary to the Treasury, said:

‘‘At the heart of our ambition is ensuring that the retirement savings of all hardworking savers are properly looked after and helped to grow. Automatic enrolment has been a great success, but we must make sure that we get the maximum value for every penny saved. As we look to the future and the Defined Contribution sector grows along with savers’ expectations, we need to ensure trustees are equipped with the skills and support needed for the challenges ahead.’’

Input is welcomed from:

  • pension scheme trustees
  • pension scheme providers
  • other industry bodies and professionals
  • members of the advisory community
  • any other interested stakeholders.

This consultation closes on 5 September 2023.

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