The Department for Work and Pensions (DWP) has announced the launch of a working group designed to help the government develop guidance to support pension trustees’ investment decision making.

The group was formed to develop practical, principles-based guidance to give occupational pension scheme trustees greater clarity and confidence on their investment duties.

Technical Working Group chair, Sir Robin Knowles, has met with Pensions Minister, Torsten Bell, to discuss the group, which brings together 13 experts from across the pensions and investment sectors.

Its work to support the government with the development of new statutory guidance to help trustees consider wider and long-term factors, such as the impact of climate change, market volatility, and geopolitical events, within their existing investment duties has begun, with the first meeting having taken place on 5 March.

The DWP said the guidance is intended to give trustees greater confidence to act in the best interest of members, and support the government’s push to raise trustee standards and improve member outcomes.

Organisations represented in the group were Eversheds Sutherland, the Association of Pension Lawyers, Sackers, the Institute and Faculty of Actuaries, ShareAction, LGPS Central, Pensions UK, UKSIF, Independent Governance Group, USS, the Investment Consultants Sustainability Working Group, and Nest.

“Pension trustees steward billions of pounds on behalf of millions of savers, and they deserve clear, practical guidance to help them do that job well,” said Bell.

“That’s why we are acting now – to ensure they have the clarity they need to fulfil those duties effectively and make sure they get the best outcomes for millions of savers.”

Knowles added: "Where investment is concerned, these are complex times. trustees, with those who assist and advise them, are entitled to clarity and confidence as they do their crucial work.

“To those ends, bringing together experience and expertise from across the sector, we will endeavour to support trustees with practical and realistic guidance on their duties."

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