Helen Ball comments on the Spring Budget

Partner Helen Ball comments; “Today’s Budget shows that pension funds remain a focus for the Government’s plans to increase investment in UK plc. DC and Local Government schemes will be required to publicly disclose the breakdown of their asset allocations, including UK equities. If the data indicates that UK allocations are not increasing, the government may well take further action.

The new value for money framework has already been under discussion for some time, but the Chancellor also proposes to prevent consistently poorly performing schemes from taking on new business from employers. We await further details about how regulators will identify “poor performers” but understand both TPR and the FCA will be provided with a range of intervention powers.  The hope is that member outcomes will improve if the Government succeeds in creating a “savings culture”. But ensuring schemes meet appropriate standards of governance and performance is only one side of the coin, engaged members making appropriate contributions is the other.”