PLSA supports Mansion House reform aims while highlighting implementation concerns

Article summary

The Pensions and Lifetime Savings Association (PLSA) has responded to government consultations on Mansion House reforms affecting defined contribution (DC) schemes and the Local Government Pension Scheme (LGPS). While supporting the overall objectives of fostering economic growth and improving outcomes for savers, the PLSA warns of potential implementation issues and unintended consequences. For DC schemes, the PLSA expresses concern that the proposed scale test may not achieve the goal of increasing UK productive asset investment and could disrupt the market. Regarding LGPS reforms, the PLSA supports funds setting local investment targets and enhancing governance but cautions against changes to strategic asset allocation responsibilities. The association also advocates for a pragmatic approach to compliance timelines for both sets of reforms.