Government confirms amendment to Pension Schemes Bill mandation clause

In a series of amendments to the bill published on Friday (10 April), the government confirmed a limit to the extent that it can mandate how defined contribution (DC) pension schemes invest – noting it will not require schemes to invest more than 10% of total assets held in default funds or more than 5% in UK-based assets. These values are in line with the amounts set out in the voluntary Mansion House Accord. The pensions industry has broadly opposed the introduction of powers to force pension schemes to invest in assets of its choosing, and the Association of British Insurers recent...