The Impact of the Economic Sanctions on Russia

Part of 3. Questions to the Senedd Commission – in the Senedd at 3:10 pm on 16 March 2022.

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Photo of Ken Skates Ken Skates Labour 3:10, 16 March 2022

Dirprwy Lywydd, can I first of all thank Peter Fox for this question? Obviously, the question of where funds are invested is of very great interest to Members at this time, who, rightly, would not wish to see funds invested in any Russian entities. Now, clearly, the Commission has no means to influence the allocation of the Members' pension scheme assets. That power rests entirely with the pension board, which is independent of the Commission, and the decision on where to invest is based on advice that's received from the board's investment advisers and is agreed by the pension board as a whole. So, whilst the Commission are aware of the issues, it is not for the Commission itself to make a financial assessment—it's for the pension board.

I understand that the pension board have issued a statement very recently to Members regarding this matter. It can be viewed on the Members' intranet page. Questions about the Members' scheme's investments should be addressed to the pension board. I know that Mike Hedges, as a Member-nominated trustee, is very happy to answer any questions that Members may have.

Now, the second fund, being the support staff pension scheme, is run by Aviva, and decisions on the investments of support staff pensions rests with their specialist investment advisers and the support staff themselves. So, the Commission, again, is not involved in deciding how the assets are invested for that scheme either. The Commission's pensions team have been engaging with Aviva though, who have confirmed that they have very little holdings in Russia, and the situation is under constant review. The team have worked with Aviva to provide a communication for support staff addressing concerns that they may well have and, again, this can be viewed on the intranet pages.

Now, with regard to the third fund, that being the Commission staff—. The civil service pension scheme, which is the third fund, that's an unfunded scheme and, therefore, it has no assets to invest. Benefits are paid through that scheme from tax revenues rather than from assets.