Since 2008, all UK-based employers have had a statutory obligation to offer their employees a workplace pension scheme. An estimated £3 trillion is managed by private pension funds in the UK, giving us enormous collective financial power. If enough of us take action, we can persuade our pension funds to divest from companies that make nuclear weapons. Those companies would then be forced to reconsider their involvement in nuclear weapons production.
Pensions can be complex. It may be necessary to do some research to find out where your pension contributions are invested and who you should contact about the fund’s policy. ShareAction is a charity that promotes responsible investment and has lots of useful resources for people who want to promote divestment. ShareAction’s Pension Power Toolkit explains different types of pension funds, offers tips on how you can find out where your pension contributions are invested and includes a step-by-step guide for influencing pension fund policy.[1]
ShareActions’s Education and Organising Team is available to provide further assistance and can be contacted via phone or email: 020 7403 7800; info@shareaction.org.
Four steps towards divestment
Step 1: do your research
Find out:
A. What type of pension you have and whether divestment is possible
If you’re a member of a statutory pension scheme, for example if you work for NHS Scotland or teach in a state school, divestment will not be possible. Contributions to these schemes are not invested in stocks but held by the exchequer in a ‘notional audited scheme fund’ and when you retire, your pension is drawn directly from taxes.
If you work for a local authority, you will be a member of one of the 11 funds in the Scottish Local Government Pension Scheme. These funds invest in shares so divestment is possible and there is scope to influence your fund’s policy.
If you work for another type of employer, you should be enrolled in a workplace pension scheme. This might be a scheme specific to your company or something like the National Employment Savings Trust (NEST), which is a workplace pension scheme that can be used by any UK employer. These schemes invest in equities so divestment is possible.
If your employer has not given you information about what type of pension you have, you should request it. You can also contact ShareAction to help you with this: info@shareaction.org; 020 7403 7800; https://shareaction.org.
B: Whether the fund has investments in nuclear weapons producers
Check Don’t Bank on the Bomb’s Hall of Shame,[2] the pension fund’s website or write to the fund.[3] If you work for a local authority or any of the other bodies covered by the Scottish local government pension scheme, you can check section 3 of this guide to see whether your pension fund is invested in nuclear weapons.
C. Whether the fund has a comprehensive policy prohibiting investments in nuclear weapons producers
Check Don’t Bank on the Bomb’s Hall of Fame,[4] the pension fund’s website or write to the fund.
Step 2: express your concerns
Write to your pension fund’s managers to explain your concerns, request that the fund divest from nuclear weapons producers and adopt a comprehensive policy. You can include the following points:
- Say that you are a member of the fund.
- Say that you are aware of the fund’s investments in nuclear weapons and explain why you believe that the fund should divest (see section 1 for arguments that you can use).
- Request that the fund adopt a comprehensive policy prohibiting investment in nuclear weapons producers. There are many examples of comprehensive policies in Hall of Fame[5] that you can point to.
- Let them know that you expect a response and say that you will move your money if the fund does not adopt a comprehensive policy.
Alternatively, if your pension fund is listed at https://investinginchange.uk/action/, you can contact the fund using one of the template emails provided.
Step 3: arrange a meeting
Seeking a face-to-face meeting with representatives of the fund is the best way to effect change, according to ShareAction. ShareAction also recommends forming a group with like-minded fund members and approaching the fund collectively.
You will need to decide who the best person is to approach for your fund and ShareAction’s Pension Power Toolkit gives some suggestions.[6] It could be the fund’s trustees, asset managers or designated responsible investment officers. You can also contact your trade union, as there will often be union representatives serving as trustees of the pension fund.
Step 4: move your money
Workplace pension schemes often offer a choice of funds and you may be able to move your pension into an ethical fund with a policy relating to nuclear weapons. You can check whether the policy is comprehensive and whether the fund has investments in nuclear weapons producers as per step 1 above.
NOTES
[1] ShareAction Pension Power Toolkit: https://shareaction.org/wp-content/uploads/2016/09/MissionPensionPower.pdf.
[2] https://www.dontbankonthebomb.com/investors.
[3] You can also check the UK Nuclear Weapons Financing Research Group’s Investing In Change report as this has additional information about UK pension funds on p 8: https://investinginchange1.files.wordpress.com/2020/11/09086-banking-briefing-6.pdf.
[4] https://www.paxforpeace.nl/publications/all-publications/beyond-the-bomb.
[5] Ibid.
[6] https://shareaction.org/wp-content/uploads/2016/09/MissionPensionPower.pdf.
Don't Bank on the Bomb Scotland 