Chair of the Trustee Sustainability Working Group – Bobby Riddaway

Today marks three years of war in Ukraine, it is also the day the PMI is discussing with its members the future of Defined Benefit pension provision. I fear that there is little evidence of new pensions for people in the DB agenda just as there little thought for the liberty of Ukrainians in Ukraine. What is being promoted is the run-off of DB pensions, what is being discussed in Ukraine is not a way forward for people but a way out of warfare with victories being contested by the global superpowers. The discussion about DB is similarly how the “end-game” can benefit pension supe-powers.

This brief blog brings you a resume of what we may see if recordings of the speeches are demonstrated. I am not able to go due to my recent operation and the stress of a day that starts at 8.30 and ends at 6pm. It is going on in BlackRock’s City HQ, you will need photo-identity to get in, this is lockdown for pensions and for the PMI.

The agenda is a good view of where the DB end-game has got to

To kick off

There are three solo talks from Gerard Francis of Schroders investment solutions , Andrew Reid of BlackRock and Alex Oakley and  Valeria Piani of Standard Life.  These are principle sponsors.

Gerard asks us

“what does this market environment mean for DB pension schemes looking to adapt their investment strategies to align to their end-game? In this session, we explore the implications for schemes on the glide path to buy-out and those deciding to run-on”.

Please note the placement of strategies, those trustees and FDs “deciding to run-on” are having to make a decision to do so. Buy-out is within the grasp of most schemes and “run on” sounds like an opt-out from a default. I will be interested by the mood music in the hall on this.

Andrew Reid sees new opportunities for DB and BlackRock

From refunding surpluses to new consolidators – 2025 is set to present a number of opportunities, as well as challenges, within the DB pensions landscape.

2024 will be in retrospective review and Andrew offers the audience a chance to offer the range of solutions offered by suppliers.

Meanwhile Phoenix through Alex Oakley and Valeria Piani from Standard Life will show us the responsible face of buy out

they examine key decisions in the BPA process – from selecting the right provider to understanding the long-term impact on members after buyout. This talk connects the dots between BPA and Environmental, Social, and Governance (ESG) factors

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More views of the end-game

After these three pitches , comes a fourth from Richard Jones who manages Punter Southall’s capital backing of DB schemes looking to carry on. Richard ..

will discuss how capital backed journey plans are ideally placed to support schemes in all stages of their journey to their end games.

I will find it interesting to see how this will work. Are all schemes in a stage of their journey or are schemes such as USS, Railway Pensions, LGPS and other schemes still taking new money members to provide future plans, excluded?

It is not until 3 hours in that we move towards political strategy with Steve Hodder (LCP) and Helen Forrest Hall , or – for the more granular – a discussion of data management in the “endgame” from Dr Tim Drye Chief Data Officer of  Mortality Manifest

I hope that some discussion will occur from the people who debate on DB matters on these pages.

The day’s end game

Following lunch (provided by BlackRock) , the afternoon provides us with a different approach with Bobby Riddaway (the new Chair of the Trustee Sustainability Working Group) discussing matters with other trustees and Richard Smith asking questions for the deferred members about next year’s Pension Dashboard. Ellie Mckinnon  will compete with Richard for interest in how small schemes can use Cheviot to get efficiency and innovation through consolidation into her scheme.

But they will need to follow up Andrew Dodd, formerly an actuary at Punter Southall and now the Head of Regulation at the Pensions Regulator.  I expect some interesting questions from the floor as this session will

provide an overview of the upcoming DB Funding Code, outlining key principles and expectations for scheme funding and risk management.

John Shotton Director of Capita Pension Solutions Ltd follows, getting his own slot to discuss admin. He promises us a lot as this

insightful session we will explore the vital role administrators play in the successful operation of pension schemes, how their responsibilities have evolved, and why they are critical in meeting both Trustee and member objectives. We’ll also discuss the future of pension administration and the transformative impact of technology in driving better outcomes.

Frankly, I’m more interested in hearing from practitioners at the ground level than pitches from above and I hope that John is as good as his promise. Like Richard Smith, he is engaged with members and their pensions.

The conference ends with two sessions involving the president

As far as I can make out, these are the only sessions that involve panels discussing  between themselves. I look forward back from my partner how these went in particular and hope that if not a digital recording , an account of highlights, will appear on this blog before too long.

It is a conference that is quite different from the PLSA’s. The PLSA approach is to include many voices, PMIs focusses on the sponsors who are given an opportunity offered by engaging with their firms. Here are the sponsors again. Portfolio Institutional are the reporting sponsor!