The government has treated pensions taxation like a convenient 'slush fund' when times get tough, PLSA chief executive Joanne Segars has stated.

Speaking at the PLSA Annual Conference, Segars said that perhaps the most dangerous political fix has been the constant chipping away at pensions tax relief. “The government treats pensions tax like some sort of convenient slush fund to dip into when the going gets tough,” she stated.

“We might think the Chancellor has taken his beady eye off pensions tax relief now the government has abandoned its objective to eliminating the deficit by 2020. We might think that maybe we can breathe a sigh of relief. I would caution not to get ahead of ourselves because it is too easy for governments to come back for more. And that in my view would be a mistake,” Segars added.

She also noted that the new Prime Minister Theresa May is trying to inject more long-termism in corporate decision making and “we need to see some of that same logic with pensions decision making”.

“We need a government to work with us to help deliver better pensions for everyone. We need a government to provide leadership, stability and a long-term view and an end to short-term knee-jerk pensions decision making,” she explained.

Segars agreed with the Prime Minister's aim to create an economy that 'works for everyone'. As the Prime Minister said at the Conservative party conference recently that she wanted to forge a new relationship between government and business, as businesses that are committed to and value their workforces are likely to work better long term, so pension funds need to know more about the companies in which they invest, Segars said.

“It is essential the pension funds know more about the companies in which they invest, manage and engage their workforce. We know that engaged workers make for stronger companies and better investment returns. We are calling on corporates to provide more information to pension funds and other investors about their workforce,” she added.

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