Trustees of defined benefit pension schemes are responsible for setting investment policy. But although they have to consult with the employer before finalising their policy, this often ends up as a cursory exercise with no real discussion or debate.
Investment policy is crucial to the scheme in two ways – placing a value on its liabilities and determining the contributions needed to fund it. So it’s vital that employers engage in the detail of investment discussions, making sure the policy aligns with the company’s long-term plans.