I am giving my support to a series of amendments to the Pension Schemes Bill, which show how pensions can be used for social good. This includes aligning investments with priorities such as divesting from fossil fuels and companies implicated in war crimes.
Private pension wealth makes up 42% of UK household wealth, so any serious effort to rewire the economy in favour of working people must consider how this vast pool can be used to improve the lives of those whose payslips create it.
Representation for Workers: There is currently no requirement for worker representation on the boards of Local Government Pension Scheme (LGPS) pools. Amendment 1 would require employee representation on boards as a requirement on asset pool companies for LGPS. It is vital that the workers who pay into these funds have a fair voice in decisions about how their money is invested.
Pre-1997 Pension Indexation: Thousands of retired workers have seen the value of their pre-1997 occupational pensions eroded due to the absence of mandatory indexation. This means pensions did not increase to keep pace with rising costs. New Clause 18 would require the Secretary of State to report on compensation in respect of pre-1997 rights, where scheme rules provided for that.
Investing For Social Good: Directing pension funds toward social good is one way our Labour Government can rewire our economic model so it delivers for ordinary people. New Clause 5 would require the Secretary of State to review the efficacy of pension scheme investments in terms of social good, such as investments in social housing and green technology. These are sectors that build a better future for the very people whose contributions fund them.
Upholding Human Rights: The overwhelming majority of the public would be horrified to see their savings invested in companies entangled in war crimes and human rights abuses. Amendment 2, supported by the Palestine Solidarity Campaign would require that investments of the LPGS should be compliant with the UK’s duty not to aid or assist serious breaches of international law. New Clause 4 calls for the Secretary of State to undertake a review into investments into defence companies within the LGPS to determine how this impacts our international obligations.
Divesting From Fossil Fuels: The environmental crisis is the greatest challenge facing mankind – its impacts disproportionately harm the global working-class, so workers’ wages shouldn’t be fuelling climate catastrophe. Amendment 3 would require LGPS to divest from oil and gas companies within 5 years. This is also economic common sense as our economy shifts toward decarbonisation
