Call for Evidence
Call for evidence: Defined benefit pensions with Liability Driven Investments
The Work and Pensions Committee launched its inquiry on Defined benefit pension schemes with Liability Driven Investments on 24 October 2022. We are grateful to all those who have submitted written and oral evidence so far.
The Committee is interested in any further views to inform its session with the Minister for Pensions and the Economic Secretary to the Treasury in March. It would also welcome comments on two specific developments:
- The Pensions Regulator’s (TPR) consultation on its draft funding code of practice for defined benefit (DB) pension schemes, launched on 16 December 2022. The Committee asked TPR to postpone the consultation until it had reported, in light of concerns that had been raised that the proposals would result in increased herding in pension scheme investments. TPR did not agree but said that if the consultation raised fundamental concerns, it would consider whether further consultation was needed.
- The Bank of England’s Financial Policy Committee’s recommendations in December that TPR should take regulatory action, in coordination with the Financial Conduct Authority and overseas regulators, to ensure LDI funds remain resilient and, longer term, set out appropriate steady state minimum levels of resilience for LDI funds including in relation to operational and governance processes and risks associated with different fund structure and market concentration.
The deadline for submissions is Friday 3 March 2023.
As previously stated, the Committee intends to launch a further inquiry on Defined Benefit schemes and will announce the terms of reference in due course.
This call for written evidence has now closed.
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