Law Commission tells pension trustees to plan for long-term

 
Kate McCann
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PENSION trustees must invest and plan for the long-term, not for short-term financial gains, according to a new report from the Law Commission.

The government asked the commission to look into the law surrounding investments after concerns that investors were focusing on short-term share prices to satisfy legal requirements when making investments for large schemes.

The commission also concluded that while financial sustainability should be of primary concern to trustees, non-financial factors can also be taken into account. This includes ethical concerns, as long as scheme members share the views and there is no significant financial risk attached.

The report comes as the next round of UK-based employees are auto-enrolled into the government’s new workplace pension scheme. Today, businesses that employ 62-89 staff will join up.