4. Will the Commissioner make a statement on the new investment allocation for the Assembly Member pension scheme? OAQ52338

Decisions on the investment allocation for the Assembly Members' pension scheme are the responsibility of the pension scheme's board, and the Commission has no involvement. The decision on where to invest is based on advice received from the board's investment advisers, and is agreed by the pension board as a whole.

Members have recently received notification from the board of a new investment allocation where, instead of one portfolio manager—I think, sensibly—we've moved towards a handful of different portfolio managers. However, I would query the decision in the allocation to invest over a tenth of the pension fund in index-linked gilts, which currently guarantees that, over the term of investment, we will lose 1.5 per cent or so per year. And when the Commission is having to put in, I think, around 3 per cent extra per year because of lower projected investment returns, doesn't that, in turn, reflect that allocation decision, where we also see no specific allocation at all to UK equities, which have a dividend yield of between 3.5 per cent and 4 per cent and are currently on valuations compared to earnings that are relatively low compared to other developed markets?

Well, whilst I understand the point that you've made, as I said in my answer, the Commission itself has no direct involvement in the decision taken in the investment allocation decision that the pension board has just taken, but I think it is appropriate for you, should you wish to do so, to make representations to the pension board. As Assembly Members, we have representatives on that board that we've elected as Assembly Members, and also, of course, the Commission has representatives on that board. I'll make sure that the Commission representatives are aware of the views that you've expressed, and I hope that you use your representatives on the board equally to make the views that you've said at this point.

Who is it?

Thank you. Simon Thomas.

Mike Hedges.

I think that was an answer to the previous question. [Laughter.] Now, it’s very possible, in light of what the Llywydd has said, that she won’t be able to answer this question, but she will be able to convey the message to the Commission side on the board. I noticed recently that the future generations commissioner had written to all pension funds in the public sector in Wales outlining how to decarbonise pension investments. I also realise that these pension funds, for example, have come together to offer an investment in the Swansea bay tidal lagoon, and they are seeking these opportunities. So, two questions, therefore: is the Assembly pension board part of the public sector regime in Wales? And, secondly, has the board received this letter from the commissioner, and what actions are being taken as a result of that?

I can’t answer that final point, certainly. I’m not aware of whether the pension board has received correspondence from the future generations commissioner, but I would encourage her to contact the pension board directly, because I would hope that the pension board would want to look very carefully at the points that she’s made to and encouraged on the public sector pensions in Wales. So, I hope that she will contact the pension board directly.

Thank you. Question 5, again to be answered by the Llywydd. Bethan Sayed.