Dr Hari Mann: RSA Tomorrow's Investor programme

Dr Mann was the first speaker at last weeks meeting of the Association of Member Nominated Trustees (AMNT).

He spoke about the 4 year research programme into investments by the Royal Society Arts/Tomorrow's Investor Programme. He and co-author David Pitt-Watson published this report in July on Collective Pensions. 

His key theme was the high cost of many defined contribution pension schemes and the lack of transparency over charges. He prefers the Danish model where you find clear cost transparency which allows market forces to work effectively and drive down charges. In the UK the pension annual management charge does not include all costs. Some schemes charge up to 5% of contributions.

 

While it is clear that due to cost well designed Collective DC schemes are far better than individual DC. They are still clearly inferior than Defined Benefit schemes and always will, be since the risk in all forms of DC, remains with the employees. Also the return from pension annuities is so miserable that you need to save huge amounts in order to receive a decent income from DC.

 

Surely there is no getting away from it that it is better to retain (and reform when necessary) DB schemes? The real problem with DB is not that it is unaffordable but that of outdated accounting standards and the resulting volatility in valuations?

AMNT meeting September 20

"Dear member,

Do you know how much your scheme is being charged, and whether that is too much? Do you know what to look for?

Come along to the open meeting of the Association of Member Nominated Trusteesand find out.
 

The meeting will be held next Thursday at Barings Asset Management, 155 Bishopsgate, London, EC2M 3XY.

If you have not done so already, you can register by choosing one of the following options:
 

- Click here if you would like to attend the meeting and will arrive for lunch (please let us know if you have any dietary requirements);
- Click here if you would like to attend the meeting, but are unavailable for lunch;
- Click here if you are unable to make the meeting.

A buffet lunch will be served from 12:30, and the meeting will begin at 13:30.

The theme is ‘Costs of Pension Schemes’ and we are putting together a programme of speakers and discussions which will be of interest to all.

We have Hari Mann presenting some of his research recently published by the RSA as a paper on “Charges to Pension Funds”, followed by a speaker from Barings, our hosts for the day.
 

Then John Simmonds from CEM Benchmarking will speak on “Comparing the cost of running pension schemes: If you pay more, do you get more?”
 

We will then break into smaller groups to discuss what we have heard, and what we can apply to our own schemes. Each group will present a brief summary of their findings, after which there will be an opportunity to network over drinks.
 

We also welcome new trustees with no experience just as warmly as we welcome those who¹ve experienced the joys of trusteeship for years.

Regards,

AMNT Committee"

 

My PS if you are a member nominated trustee (or LGPS representative) and have not yet joined the AMNT click here.