27 April 2007
Members of the incoming personal accounts savings scheme should be able to tell fund managers how their shareholder voting rights must be exercised, consultants have said.
Experts at Pensions Investment Research Consultants want members of the state-run National Pension Savings Scheme to be able to submit a template to those managing and investing their savings, outlining demands that they have over the use of their funds.
The NPSS, which will match employee contributions with those from the government and employers from 2012, has been created to prevent an occupational pensions crisis.
Pirc's suggestion, which forms part of the Department for Work and Pensions' consultation, reflects the intensifying debate over ownership issues within the national system. It will be administered by a public body, but managed by investment firms.
Pirc's suggested system would allow individuals to influence boardroom votes at firms in which their funds are invested, for example by contributing to debates over executive pay.
A default voting template could also be adopted by the Personal Accounts Board, the guardians of the system, which could be applied to individuals who do not opt for a particular approach. Pirc's experts added that voting rights should not be delegated to the personal account scheme's fund managers.
Alan MacDougal, Pirc's managing director, said: 'The personal accounts system presents a once-in-a-generation chance to give people a real sense of ownership of their financial assets and truly democratise share ownership.'
PFapr2007
