There’s nothing like a review

by | Feb 1, 2024 | Pension History

In February 1996, pensions professionals were working out how to implement a new regulatory framework. The Pensions Act 1995 had been introduced with general support following a comprehensive review of UK pensions law and practice, and was gradually being brought in through numerous detailed regulations. At its February meeting the ACA considered potential difficulties in actuarial certification of the new minimum funding requirement.

The 1995 settlement was not to last. Relentless change has been a feature of UK pensions since, not least the overhaul of the system almost 10 years later, with the advent of the Pensions Regulator, Codes of Practice, buy out debt and anti-avoidance provisions. With a General Election on the horizon, we can expect more change. If, as widely expected, Labour wins the Election, it intends to conduct another wide-ranging review of the UK pensions system and may also (we have no details) go further than current government initiatives in encouraging investment in British business in an effort to boost growth.

Roughly 40 years ago George Ross Goobey was reminding a FT conference that pension investment demanded the best possible investment result for every penny, suggesting that it was no time to listen to those who saw pension funds as a source for assisting lame ducks or rebuilding inner cities ‘whether profitable or not as an investment’ or who condemned overseas investment as diverting funds which could be used to bolster British industry.

Pensions Archive Trust Director, Jane Marshall

This article was first published in the February 2024 edition of Pensions Age magazine.