Myners pension principles to get government makeover

The Myners principles, designed to improve trustee investment decision-making and pension funds governance, are to be revamped after three government arms come together to review them.

The Treasury, the Department of Work and Pensions (DWP) and The Pensions Regulator (TPR) are responding to last year’s National Association of Pension Fund (NAPF) review entitled Institutional Investment in the UK: Six Years On, which recommended updating the Myners principles.

A review of the principles could result in a set of simplified, higher-level principles and the development of a comprehensive suite of best practice guidance and tools to help trustees improve investment decision-making and governance.

The pensions industry would also take increased ownership of the principles and an Investment Governance Group, chaired by TPR, would be created to monitor the effectiveness and the quality of the reporting of pensions issues against the principles.

Exchequer secretary to the Treasury, Angela Eagle said: ‘Paul Myners’ goal was that the principles should become the accepted code of best practice in investment decision-making and governance, with trustees assessing their capacity and practice against them.’

She continued: ‘The NAPF’s review of the Myners principles is an important step towards that goal. The government is taking forward the review’s proposals to simplify and update the principles and to improve reporting against them.’

The Myners principles were established in 2001, following a review by former chairman of Gartmore Paul Myners, as a set of voluntary ‘comply or explain’ principles, to improve trustee decision-making and governance of pension funds.

Myners is currently heading up the personal accounts delivery authority.