Govt and pension schemes to meet over £20bn investment plan

Ministers and pension scheme representatives will meet every fortnight over the next three months to plan funding in UK infrastructure.

A Memorandum of Understanding (MoU) signed by the Treasury, the National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) stipulates officials will meet twice a month or more to help boost infrastructure allocations above 2.5% for schemes.

A framework for the infrastructure plan, announced during chancellor George Osborne's autumn statement last year, will then be revealed in the 2012 budget.

The plan is part of an initiative intended to generate about £170bn of private sector investment in UK infrastructure required by the Treasury.

The agreement, released by the Treasury under a Freedom of Information request, gives the Treasury "full and timely access to appropriate information and data" from the NAPF and PPF to help the ministry provide advice.

However, the parties will be expected to consult independent external advisors before entering into any commercial or financial arrangements.

The MoU is signed by NAPF chief executive Joanne Segars, PPF chief executive Alan Rubenstein and Infrastructure UK chief executive Geoffrey Spence.

The document says the timetable of meetings will allow representatives to help establish "efficient and appropriate investment platform(s) and/or conduit(s)" for UK pension funds to invest directly in UK infrastructure assets.

It said: "The Treasury will, where necessary, provide advice, resource and support to the parties in developing potential investment options.

"The nature of Treasury advice and support should be seen as distinct and separate from formal, independent third-party advice and support."