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The government will take a reserve power to set binding asset allocation targets and secure £27.5b for local investment priorities from defined-benefit programs for public employees. The government also plans to pool £1.3 trillion of retirement savings into "megafunds" and allow defined-benefit programs to access their surpluses and reinvest them into their core businesses.
The “threat of government telling trustees how they should invest is a step too far,” Laura Myers, partner at consulting firm LCP, said on Thursday. “Trustees draw on professional expertise to draw up an investment strategy which will best meet the needs of members,” Myers said, adding this should “never be overridden by the political priorities of the government of the day.”
