Maynard said: “CDCs can, in theory, provide better return for savers on average, allowing them to remain in high-growth assets for longer and helping drive economic growth.
“At the same time they offer savers the assurance of income in retirement."
Investing in illiquid assets
Maynard also used his keynote to address the value for money framework, the issue of small pots and ways of ensuring pension savers had a decent default retirement solution.
He said: “A lifetime provider solution could provide one pot for life. This would be a significant change and I know that there are strong views on the matter.
“We are looking at feedback from the consultation and will respond - in civil service speak - in due course.”
Maynard added the government would be consulting with the industry on ways of updating the current framework to enhance protection and primary legislation was needed to close down poor performing pension schemes and protect savers.
The delivery phase of the small pension pots plan was also a priority.
“There are 12mn deferred pension pots each under £1,000 with a loss to the industry of £225m a year. This clearly needs a resolution of some sort.”
One of the more contentious proposals to come out of the Mansion House reforms was the government’s push to get more defined benefit schemes to invest in private equity and productive finance.
Maynard said the use of illiquid assets needed to be managed in a way that protected members as well as encouraged more growth in the UK economy.
He said: “We have reformed the pension charge cap and provided pension schemes with more flexibility to invest in illiquid assets including start up companies and renewables.”
“We are encouraging larger schemes to diversify their investments, so we are removing performance fees from the charge cap.”
Samantha Downes is a freelance journalist
