Rory Murphy: Pensions have long term outlooks that can stretch decades into the future
The establishment of a permanent, independent Pensions Commission would ensure the interests of pension funds and their members are “front and centre” of ministers’ minds, Rory Murphy says.
The chair of trustees at the Merchant Navy Officers Pension Fund (MNOPF) has long supported the establishment of an independent commission – writing an article setting out the case for a permanent pensions commission for Professional Pensions in April.
Speaking to PP as part of the PP Pensions Commission, which is bringing together industry opinion and ideas on the future of pensions to send to the new government, Murphy said an independent commission could help resolve any "occasional disconnects" between the interests of ministers and scheme members.
Murphy said: "The interests of ministers and the interests of pension fund members frequently coincide but there are, inevitably, occasional disconnects.
"Pensions have long term outlooks that can stretch decades into the future. Ministers' priorities are ultimately (and understandably) fixed around the electoral cycle. As a result, pensions policy can, however well intentioned, be reactive (addressing problems that should have been prevented), and even counter-productive."
He explained: "A permanent, independent pensions commission would ensure that the longer-term interests of pension funds and their members are kept front and centre of ministers' field of vision.
"Such a body, made up of representatives from the pensions industry, employers, members, trade unions, academics and voluntary organisations, would provide an ongoing assessment of the strengths and weaknesses of the pensions system. It would be able to make policy recommendations to ministers, who would remain in charge of implementing policy but who would be required to publish their response to the commission's recommendations."
Murphy added: "This approach would not curtail the powers of government to implement pensions policy. It would, however, ensure that policy is aligned as closely as possible to the long-term interests of pension funds and their members, leading to better outcomes for all."
This article was published as part of Professional Pensions' PP Pensions Commission – which is bringing together industry opinion and ideas on the future of pensions to send to the new government
