Pension Scheme Return meaning

POWER CLAUSE / RULE HELD BY REQUIRES AGREEMENT OR CONSULTATION WITH SUBJECT TO Authority to amend; to wind the scheme up or delay winding-up; to cease future benefit accrual; to shut to new joiners; to readmit employees to membership of the scheme Discretion to set the employer contribution rate; to lower or suspend contributions; to apportion statutory debts Ability to enhance or vary benefits; to permit early retirement pensions and set actuarial reductions; to allow incapacity pensions, decide whether a member meets the incapacity definition, and reduce or pause such pensions; to grant pensions for serious ill-health; to apply actuarial uplifts for late retirement; to fix the rate at which pension is exchanged for a lump sum; to commute trivial pensions; to provide a bridging pension; to award discretionary increases to pensions; to make unauthorised payments Capacity to admit new employers or end their participation; to replace the principal employer; to transfer members’ benefits into or out of the scheme Authority to return...

What is the background to the call for evidence? Following Chancellor of the Exchequer Jeremy Hunt’s Mansion House address the night before, the DWP launched the call for evidence. Issued in tandem with several other DWP publications, these materials covered a broad spread of topics affecting UK pension schemes. Their shared aim was to boost investment in UK productive finance whilst shielding members’ benefits and giving precedence to a resilient, diversified gilt market. The Chancellor characterised the proposals across the various papers as the ‘Mansion House reforms’. The DWP placed the Response alongside further papers pertinent to DB pension schemes, including: the Autumn Statement 2023, which confirms that the Government will reduce the authorised surplus payments charge, currently payable on a return of surplus to a scheme employer, from 35% to 25% from 6 April 2024; and Call for evidence outcome: Pension trustee skills, capability and culture What was the outcome? ...

What is the background to the Pension Schemes Bill? The Pension Schemes Bill reached the House of Commons on 5 June 2025, which was hardly unexpected. It had featured in the King’s Speech at the State Opening of Parliament for the new Labour Government in July 2024, and has been referenced on numerous occasions since. As is common with pensions legislation, it was designed to encompass a variety of issues, several of which had been under consideration by the Department of Work and Pensions (DWP) for some years. Accordingly, its eventual arrival was widely anticipated. What are the key measures/provisions in the Bill? The Bill is arranged in five parts. The first part concentrates on defined benefit (DB) schemes and addresses two quite distinct matters: Asset pooling for the Local Government Pension Scheme. Allowing trustees to agree to the return of surplus in a DB scheme to the employer, which, among other things, removes the restrictions under section 251 of the Pensions Act...

In this issue: Funding and investment Scheme governance Pension scams and liberation Daily and weekly news alerts Dates for your diary Trackers Funding and investment TPR publishes revised employer covenant guidance to align with new DB funding code of practice The Pensions Regulator (TPR) has at last issued revised guidance on the employer covenant for trustees overseeing defined benefit (DB) pension schemes, to align with its new DB funding code of practice, which took effect on 12 November 2024 under the Pensions Act 2004 (Code of Practice) (Defined Benefit Funding) Appointed Day Order 2024 (SI 2024/1143). Described by TPR as ‘the last piece of the jigsaw to help schemes carry out valuations under the new DB funding code’, the update introduces the first regulatory definition of employer covenant, intended to deliver greater market certainty and foster consistency between schemes. Notable changes cover cash flow analysis, tests of reasonable affordability, maximum affordable contributions, reliability periods, covenant longevity, and...

THIS PRACTICE NOTE RELATES TO REGISTERED OCCUPATIONAL PENSION SCHEMES STOP PRESS 1: On 18 November 2025, the Pensions Regulator (TPR) urged trustees to treat member data as their foremost ‘strategic asset’ so schemes are prepared for pensions dashboards by the final connection date of 31 October 2026. After engaging with hundreds of schemes, TPR noted improvements in data quality but pointed to gaps in value data and excessive reliance on administrators, warning that neglect could put dashboard compliance at risk. It also issued refreshed member data guidance that brings together all existing data-related guidance, sets out clearer expectations for trustees and shares best practice to strengthen data management capability. TPR adds that it is reviewing data readiness among the UK’s largest schemes and will step up engagement in 2026. For more information, see LNB News 18/11/2025 43. STOP PRESS 2: On 19 November 2025, the Pensions Administration Standards Association (PASA) released guidance, ‘The Six Data Quality Dimensions for Pension Scheme Member Data’, together with a supporting...

What is the National Health Service Pension Scheme? The NHSPS is an unfunded public service occupational pension that delivers salary‑related, defined benefit (DB) retirement provision for health service staff. The reformed NHSPS (often termed the ‘2015 Scheme’) began on 1 April 2015 as a career average revalued earnings (CARE) arrangement. New starters since that date have joined this scheme, which is the focus of this Practice Note. The legacy NHSPS (the ‘1995/2008 Scheme’) consists of two separate final salary sections—the 1995 Section and the 2008 Section—both closed to future accrual, while preserving a final salary link within that scheme. For further details, see Practice Note: The legacy National Health Service Pension Scheme. There are distinct schemes in Scotland and Northern Ireland, which are not covered by this Practice Note. When the reformed NHSPS opened, the government acted to close the 1995 and 2008 Sections to future accrual, subject to: ...

FORTHCOMING CHANGE : Following the Budget 2025 announcement on 26 November 2025, the government is progressing legislation through the National Insurance Contributions (Employer Pensions Contributions) Bill to restrict the level of salary sacrifice pension contributions that qualify for National Insurance Contribution (NIC) relief to £2,000 per year. Any pension contributions above £2,000 made via salary sacrifice will, for NIC purposes, be treated in the same manner as other employee workplace pension payments; that is, primary and secondary Class 1 NIC charges will apply to those contributions. This reform is scheduled to take effect from 6 April 2029. The Bill leaves the detailed rules to be set out in regulations. For additional detail, see News Analysis: Bill to limit NIC relief passes Second Reading in Commons despite opposition and Practice Note: Salary sacrifice NIC relief to be capped at £2,000 from 6 April 2029, below. What is salary sacrifice? Salary sacrifice is an arrangement in which an employee gives up entitlement to a portion of their taxable pay...

This Deed is entered into on the [ insert day ] day of [ insert month ] 20[ insert year ]... Parties [ Insert full company name ], a company incorporated in England and Wales with company number [ insert number ], whose registered office is at [ insert registered company address ] (the ‘Principal Company’); and [ [ Insert full name of company ] incorporated in England and Wales with company number [ insert number ] and whose registered office is at [ insert registered company address ] OR [ insert individual name(s) ] of [ insert individual address(es) ] ] (the ‘Trustees’). Background: (A) [ Insert full name of scheme ] (the ‘Scheme’) came into being under an [ interim OR definitive ] deed dated [ insert date ]. (B) The Scheme is at present governed by a trust deed dated [ insert date ], as varied by the deeds executed thereafter [ , particulars of which appear...