Investment For Broad-Based Economic Growth - Pension system

• PCVs have the required scale and skills to invest funds effectively, in the interests of the beneficiaries, as opposed to on behalf of the financial intermediaries. [...] A requirement to invest for the long-term with positive social returns will be a viable option for PCVs as they will have the internal capacity and market power to achieve this. [...] The DWP will develop the design of a Swedish-style pillar 2 pension with a view to be enacted during the next Parliament. [...] The DWP will develop the design of a Swedish-style pillar 2 pension with a view to be enacted during the next Parliament. [...] • We will replace the mark-to-market approach by a mechanism design approach where the regulator considers the required outcome of investment (protection for beneficiary, social benefits, avoid systemic risk, objectivity) and develop accounting treatment to achieve these • The definition of risk needs to be re-framed from its current equivalence with volatility, to it’s ac- tual meaning of ability.