The Pensions and Lifetime Savings Association (PLSA) has announced that its top strategic priority for 2024 will be the role that pension schemes can play in supporting the UK economy.

Outlining its strategic objectives for the year, the PLSA revealed that it would further develop its recommendations aimed at promoting investment by ‘suitable’ pension schemes in assets that can help drive UK growth, which were published last year.

The updated recommendations will aim to ensure the government is equipped to make informed policy proposals for the pensions sector, without compromising the interests of workplace pension savers.

The PLSA’s Policy Board also outlined additional regulatory projects that it will prioritise this year, which were categorised under six broader themes.

To address defined contribution (DC) pension issues, the association will advocate for an ‘efficient and effective’ DC pensions landscape, including improved pension adequacy, an effective value for money framework, more at-retirement support and solutions to the small pots issue.

In the defined benefit (DB) pensions space, the PLSA will encourage a landscape that allows for a wide range of options to ensure benefit payments, through helping open DB schemes to thrive and closed DB schemes to meet their endgame targets.

The PLSA will also aim to support its Local Government Pension Scheme (LGPS) members in the orderly transition of fund assets into the eight pools, produce guidance to help funds with challenges identified in its 2022 report, and advocate for continued progress on the Good Governance Project.

Under the theme of engagement, the association said it will work on initiatives aimed at promoting saver understanding and confidence, such as pensions dashboards, the advice/guidance boundary, and its Retirement Living Standards.

On responsible investment, it will seek to ensure the regulatory framework for investments works in a way that supports schemes in achieving their investment objectives, and it will publish its annual Stewardship & Voting Guidelines in 2023, as well as engage with a range of associated topics.

The association’s final theme was governance and administration, noting that engaging with the Pension Trustee Skills, Capability and Culture consultation was a ‘key pillar’ of this work.

Furthermore, the PLSA plans to draw on its existing policy views to create a single document to make it clearer how it would like the pensions landscape to look in 10 years’ time.

“The PLSA represents a diverse range of pension scheme members from across the DB, DC, LGPS and master trust segments,” commented PLSA Policy Board chair, John Chilman.

“As our busy work programme shows, there are a lot of regulatory and policy initiatives underway to ensure that the system is working as well as it can for savers.

“The PLSA Policy Board will continue to champion a policy framework that means people will have an adequate income in retirement and aim to ensure the regulatory and operating environment is appropriate for our members.”

PLSA director policy & advocacy, Nigel Peaple, added: “Next year will be another very busy one for the PLSA. Our work programme for next year carries over many of the initiatives we have been working on over several years, with some new projects and some re-prioritisation. As ever, we will continue to play an important part in raising standards, sharing best practice and ensuring pension schemes serve their members well.

“In this election year, the debate about how pension schemes can contribute to the UK economy will continue to dominate, while consolidation continues to be a big consideration for schemes of all types. We will continue to advocate for policy reform which addresses the pension adequacy problem.”

Read more @pensionsage