Trustees have been urged by an investment adviser to look closely at their investment portfolio following the additional statutory objective placed on The Pensions Regulator (TPR).

RisCura UK's managing director Andrew Slater said that trustees have not fully realised the impact of TPR's statutory objective regarding employer contributions, because the focus before and after the Budget has been on the smoothing of discount rates.

"The cynic might say this was a deliberate distraction well played by politicians to stifle debate on the real issue," said Slater.

He explained that up to now TPR has had the power to push companies to put their spare cash into their pension schemes, but now TPR has to also consider the wider situation of the sponsor and its potential for growth.

This means that companies are now able to use their spare cash for growth and are under less obligation to pump further money into their pensions schemes, said Slater.

"This is a game-changer for the industry: the focus for schemes must now switch to generating investment returns," he said.

Slater continued: "It is more important than ever to find the best possible opportunities to improve funding positions. Trustees need to challenge their investment advisers on the best strategies to achieve the returns required to compensate for any fall in contributions."

He added: "Now that the comfort blanket of contributions is beginning to be pulled away by sponsors, it is crucial that trustees stand on their won two feet and take responsibility for their scheme through dynamic and effective investment strategies."

First published 06.06.2013

monique_simpson@wilmington.co.uk