What assessment has the Minister made of the potential of Welsh public sector pension schemes to invest in and fund infrastructure projects in Wales?
The main public sector pensions scheme in Wales which is invested in funds is the Local Government Pension Scheme. The majority of civil service pensions are met by members’ current contributions.
Investment decisions are a matter for the relevant pension authorities under a legislative framework, which is a reserved matter. This imposes a fiduciary duty on pension trustees to choose investments, which are in the best financial interests of the scheme members.
Fund managers must also take into account ethical considerations in their investment decisions and this requirement will soon be strengthened in respect of fossil fuel investments by provisions contained in the Pension Schemes Bill currently being considered by the UK Parliament. Provided that fund managers are meeting these duties they may invest to support local or national infrastructure. The Welsh Government has no powers to intervene in these decisions.