Our purpose at the Pension Protection Fund (PPF) is to protect the financial future belonging to millions of people throughout the UK who belong to defined benefit (DB) pension schemes. As a large asset owner, it’s critical we consider all the potential risks over the entire time horizon of our liabilities, and the role we can play in mitigating the worst effects of climate change.
For us, being a responsible investor and a responsible employer go hand in hand, and that’s why we offer our employees the choice of joining either a defined benefit (DB) pension through the Civil Service Pension Scheme or a defined contribution (DC) pension provided by Legal and General (L&G).
Like us, L&G believes that organisations which adhere to good environmental, social and governance (ESG) standards are more sustainable in the long-term. L&G has a responsibility to ensure the organisations they have invested in are managed well, tackle the impact they have on climate change and look after their employees. If a company it has invested in is not adhering to their ESG standards, L&G will work with it to ensure it complies with best practice. Being part of the change we need is so important for embedding change.
By the very nature of what we do at the PPF, we spend a lot of time thinking about pensions, and this also extends to ensuring we understand our own pensions, too. That’s why we provide our employees with access to regular webinars hosted by the scheme providers covering key pension topics, and access to pension portals, platforms and websites.
It’s important for us that our employees build knowledge and understanding around their pensions, so they can make the right decisions for themselves based on their circumstances and future needs.
We also believe that it’s never too early to start engaging with pensions and to understand the options available which align with different values. That’s why we provide our employees with as much information as we can about their pensions, so they can make the right decisions about their financial futures which will align with their values, and support their retirement dreams too!
Aida Rehmatullah is HR reward manager at the Pension Protection Fund (PPF)