Editor's blog: This morning, pension decision-makers and policymakers came for the first ever Leadership of DC Pensions summit, presented by #FTLive, to debate the challenges facing defined contribution pension schemes.
The day kicked off with pensions minister Steve Webb (@stevewebb1) trying to draw the various strands of government pensions policy – from inertia-driven auto-enrolment to the new retirement flexibilities – into a coherent philosophy.
Delegates were particularly attentive to the guidance guarantee, and the burden it would place on those running DC schemes, but Webb was keen to stress that the face-to-face aspect of the guidance would be a right rather than an obligation.
"Many people might choose to get their information in other ways," he told delegates.
I don't see [the guidance guarantee] as a threat to the industry, I see it as an opportunity- Steve Webb #dcleadership#FTlive
— Tom Dines (@TomDines) May 7, 2014The day kicked off with pensions minister Steve Webb (@stevewebb1) trying to draw the various strands of government pensions policy – from inertia-driven auto-enrolment to the new retirement flexibilities – into a coherent philosophy.
The budget might have happened but human nature hasn't changed, people still want certainty- Webb #dcleadershippic.twitter.com/SOfPgTnvAt
— Tom Dines (@TomDines) May 7, 2014Delegates were particularly attentive to the guidance guarantee, and the burden it would place on those running DC schemes, but Webb was keen to stress that the face-to-face aspect of the guidance would be a right rather than an obligation.
"Many people might choose to get their information in other ways," he told delegates.
I don't see [the guidance guarantee] as a threat to the industry, I see it as an opportunity- Steve Webb #dcleadership#FTlive
— Tom Dines (@TomDines) May 7, 2014Webb stressed the availability of other materials and sources such as the Pensions Advisory Service that managers could rely on, adding that face-to-face might not suit all members. Pensions lawyer @Judith Donnelly picked up on how it would be paid, prompting the most debate on Twitter. I've picked out a few choice comments.
Steve Webb: we might increase the levy on pension schemes to pay for the guidance guarantee #FTlive
— Judith Donnelly (@JudithDonnelly) May 7, 2014@IanMuseTweets@RayVay@JudithDonnelly@Fanfaronade@nick_reeve TPAS wld need massive increase in funding to do this - hence levy incr prob
— Jennie Kreser (@pensionlawyeruk) May 7, 2014@JudithDonnelly Can I come up there now and tell him why it's not a very good idea to do that? #notfreeguidance
— Nick Reeve (@nick_reeve) May 7, 2014Next up was shadow pensions minister Gregg McClymont (@greggmcclymont), who sought to unpick some of the connections in the web of reform and the lack of detail given to the short timeframe available until the freedoms arrive in April 2015.
...And now for the opposition view from @greggmcclymont#dcleadership#FTlivepic.twitter.com/Gba78Ctp8E
— Tom Dines (@TomDines) May 7, 2014There's a sense of government making policy on the hoof- Gregg McClymont #dcleadership#FTlive
— Tom Dines (@TomDines) May 7, 2014"I didn't myself get much out of it in terms of the practice and how that will ensure that people are informed about making the best possible decisions," he said. "What is this guidance, who is going to pay for it?"
Other highlights of the day included a panel on member engagement and governance, the first featuring representatives from employers HSBC and Kingfisher reacting to the wave of reform hitting DC. More analysis of that to follow (forgive my typo in the second!).
@lisa_botter chairs the member engagement panel at this morning's #dcleadership#ftlive event feat. HSBC, Kingfisher pic.twitter.com/HKE4AUvnCJ
— Ian Smith (@iankmsmith) May 7, 2014Governance panel chaired by @pensionspowell at today's #dcleadership. What is the biggest challenging DC schemes? pic.twitter.com/2yCOA5ddTY
— Ian Smith (@iankmsmith) May 7, 2014There were also strong sessions on the impact of the Budget and minimum quality standards on investment, the growing synergies between contract-based and trust-based scheme regulation, and the need for qualifications among trustees and other pension representatives.
More of that to follow in print and online.
