“The Government encourage sound sponsors and trustees of well financed DB schemes to run on and modernise them to be ESG Flagships in all stakeholders’ interests.”
That is the C-Suite recommended line responding to DWP / Treasury’s Call for Evidence on DB schemes.
The consequences are:
Replace the Death Wish Statement of Investment Principles with a positive objective of running on for good.
The Death Wish SIP is the source of the downward spiral in DB schemes’ investment returns. Replace it with Run On For Good. Go for stable, long term, higher productive asset allocations. No severance and as needed surety bonds provide safety nets. The sponsors and trustees have ESG flagships. The objective is to improve the pensions of past and present employees at little or no cost to the sponsor. The technology is available.
An ESG Flagship - Take a Look Around for your Pension Scheme