We’re all sick of hearing about it at this point, but there’s no getting away. This week marks one of the most important elections in the history of modern Britain: the EU referendum.
Both sides of the debate have fought hard to make their case, each running the full gamut from hope to fear by way of endless predictions (of varying degrees of veracity).
We do not know for sure whether warped nationalism played a role in the tragic death of Labour MP Jo Cox, but it cannot yet be ruled out.
When politics becomes as polarised as this, it can be incredibly difficult to keep a cool head and focus on the essentials. It is more difficult still for pension scheme trustees, who must make decisions on behalf of their members – who could number in the thousands.
Global markets are complex, the regulation governing UK pensions increasingly multifaceted, and once schemes have worked out these areas, they have to make sure their members understand their pensions well enough to pay sufficient contributions.
Ongoing high-profile stories of ballooning defined benefit liabilities are thrusting pensions into the ever-brighter spotlight, increasing pressure on trustees.
Navigating all this is difficult enough without having to block out cries of “the sky is falling!” from Westminster and across the country.
Illustration by Ben Jennings
But that is exactly what trustees must do.
As our story on page three points out, the possibility of Brexit must be treated the same as any other market event.
Trustee boards need to remain dispassionate when assessing one of the most galvanising issues to face our country in decades.
The truth is, for all the predictions, nobody knows for sure what will happen after June 23. As Pan Trustees’ chief executive Steve Delo says, “it is impossible to generalise; this is uncharted territory”.
As long-term investors, pension schemes are better placed than most to ride out the market consequences of either referendum outcome. So, however hard it might be, they must stand strong and focus on the long term.
