Legal News

What is the background to TPR’s guidance? As funding positions strengthen and market innovations come through, trustees and employers are encountering a wider suite of financial, governance and insurance tools to meet their schemes’ long-term aims. Insurer buy-out was once viewed as the definitive DB endgame, yet TPR has now confirmed it is not the only route. The guidance is intended to help trustees steer through emerging options, judge their suitability, and make informed choices that improve financial outcomes, strengthen governance and bolster member security. It also emphasises the relevance of scheme-specific circumstances and the importance of obtaining professional advice. What are the key points, aspects, and themes of the guidance? The guidance is framed around several core themes. Endgame planning is no longer a single-track journey, and trustees are encouraged to explore a spectrum of outcomes: aiming for...

Masters v HMRC [2025] UKFTT 967 ( TC) Employed in the UK by Tesco, Mr Masters had joined Tesco PLC’s defined benefit Pension Scheme back in 1983. In April 2016, he arranged for the cash equivalent value of his defined benefit rights—just shy of £6m—to be transferred into a UK SIPP vehicle. He relocated to Portugal in March 2019 and, from the 2019–20 tax year onwards, was treated as non‑ UK tax resident. While living in Portugal he was taxed under the Non‑ Habitual Resident regime, benefitting from exemptions on foreign‑source income, which encompassed withdrawals of £3.5m from his SIPP. Nevertheless, those withdrawals were taxed at source in the UK, resulting in £1.5m of tax being paid. HMRC then operated a PAYE tax code on the SIPP pension; Mr Masters sought instead the issue of an NT (no tax) code. In July 2020, he filed his UK...

Aon’s 2025 Discretionary Pension Increase Survey Polling of over 200 defined benefit pension schemes for Aon’s 2025 Discretionary Pension Increase Survey found that 13% awarded members a discretionary rise in 2024, down from 17% in 2023, the firm noted. Some 12% of DB schemes signalled an intention to award a discretionary uplift in 2025, Aon said. The timing of the survey was not immediately set out. Nick Coates, Associate Partner and Head of Member Distributions at Aon, remarked that pensions are grappling with evolving challenges around increases and the allocation of surpluses to members. He added: the share of schemes granting a discretionary pension increase in 2024 was lower than the year before, and a comparable pattern appears to be forming for 2025......

In this issue: Pension scams and liberation Early leavers, transfers and contracting-out Types of pension scheme New content Dates for your diary Trackers Pension scams and liberation Fifty-eight workplace pension schemes, serving 2,016 scam victims, secure £81.5m from the FCF The Pensions Regulator ( TPR), working with the Fraud Compensation Fund ( FCF), the Pensions Ombudsman ( TPO) and Dalriada Trustees Ltd ( Dalriada), has confirmed £81.5m in compensation to 58 occupational schemes targeted by scammers, supporting 2,016 victims, with more payments expected in 2025–26 for other historic scam victims. This follows the 2020 High Court decision in Board of the Pension Protection Fund v Dalriada Trustees [2020] EWHC 2960 ( Ch), which clarified when the FCF may provide compensation to pension schemes affected by pension scam activity. Those receiving compensation include victims of the Friendly Pensions Ltd fraud, prosecuted by TPR, which resulted in the 2022 convictions of Susan Dalton and Alan...

Background to TPR’s Consultation The Pension Schemes Acts 2021, together with the 2024 supporting regulations, created an obligation on trustees of private sector DB pension schemes to set out a long-term plan to ensure pension benefits can be paid. The legislation also requires trustees to record this long-term approach in a new document called the So S, which must be submitted to TPR at each actuarial valuation. The So S has two sections: Part 1 sets out the scheme’s overall funding and investment strategy, and Part 2 addresses additional matters. While much of the So S content is prescribed, the 2024 regulations give TPR discretion regarding the level of detail to be included in Part 2 of the statement. The regulations further specify that TPR is responsible for the format of the statement submitted. Consequently, in March 2024, TPR commenced a...

How have plans for UK data protection reform evolved since Brexit? Since Brexit, the UK’s approach to data protection reform has ebbed and flowed markedly, with successive governments seeking to carefully balance innovation, economic growth and individuals’ rights. The Conservative government aimed to pivot to a GDPR ( General Data Protection Regulation) lite regime by introducing the Data Protection and Digital Information Bill. That bill outlined a series of business‑friendly amendments to existing data protection rules and progressed reasonably well through parliament, only to be ultimately shelved following a change of government in 2024. Once in office, the Labour‑led administration reignited the agenda, bringing forward the Data ( Use and Access) Bill ( DUAB). While retaining the core UK GDPR framework, DUAB set out targeted reforms that indicate a shift towards a more UK‑specific regime centred on data‑driven innovation, enhanced public services and strong data...

In this issue: The Pensions Regulator The Pension Protection Fund Members and benefits Funding, surplus and investment Public sector pensions Dates for your diary Trackers The Pensions Regulator TPR acts against trustees over ERI breaches involving prohibited loans and loss of scheme funds The Pensions Regulator ( TPR) has issued a report under section 89 of the Pensions Act 2004, stressing the severe repercussions for trustees who infringe employer-related investment ( ERI) restrictions. The report outlines enforcement taken against two former trustees of the Worthington Employee Pension Top- Up Scheme (the Scheme) — a trust-based defined contribution occupational scheme set up in 2006 — after identifying prohibited loans to the sponsoring employer’s interests made from Scheme assets. Stephen Smith, a trustee, received a 10-month suspended prison sentence after admitting to five unlawful loans to entities linked to Marcus...

SPP response to MHCLG consultation on LGPS fairness reforms On 7 August 2025, the SPP cautioned that rolling out a suite of measures aimed at enhancing fairness across the LGPS may prove disruptive, with the extent of impact shaped by the timing of implementation. This formed part of its response to the Ministry of Housing, Communities & Local Government ( MHCLG) consultation, which is considering changes to LGPS benefits to tackle discrimination and narrow the gender pensions gap. The SPP also highlighted that these proposals arrive as the LGPS is already progressing other initiatives, such as: Delivering the age discrimination remedy Converting member records into a format compatible with new online pension dashboards Given this overlap, the SPP indicated that disruption remains a real possibility depending on when each change is introduced......

Watson Farley On 5 August 2025, Watson Farley observed that the push to appeal to ESG‑aware investors and consumers has given companies powerful motives to overstate the genuine sustainability of their activities. The firm says this trend is drawing increased scrutiny from relevant regulators. The report notes that the need to tackle greenwashing has now hit a new high in 2025. Watson Farley highlighted several recent matters that, it said, demonstrate a step‑up in disputes around greenwashing. As an illustration, it referenced the Competition and Markets Authority ( CMA), which has announced it will commence public enforcement of its green claims code in 2025. The code is intended to stop businesses from issuing environmental assertions that lack evidential support. The CMA can penalise companies that breach the code......

Border to Coast said the councils of Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire and West Sussex — together representing about 830,000 members — have begun exclusive talks to join the pool. As at 31 March 2025, the pool oversees roughly £65bn in assets through 11 partner funds, serving 1.1 million members. These seven schemes had previously been part of the rival Access pool, but were compelled to seek new pooling partners after proposals from both Access and Brunel — another LGPS pool — were deemed not to satisfy the government’s vision for the future of the LGPS set out in its ‘fit for the future’ policy. Jeremy Hunt, Chair of the West Sussex Pension Fund and a former Chancellor, said in a statement on behalf......

In this issue: Pension Protection Fund Trustees Scheme governance Investment The Pensions Regulator Dates for your diary Trackers Pension Protection Fund PPF postpones 2025/26 levy invoicing with update due in autumn The Pension Protection Fund ( PPF) has paused invoicing for the 2025/26 levy year, with a further progress update expected in the autumn. In January 2025, it set out levy rules projecting a £45m total—half the 2024/25 figure—and included the option of a zero conventional levy if the Pension Schemes Bill advances sufficiently. The Bill, which would give the PPF greater latitude over whether to impose a levy and at what level for eligible schemes, is scheduled for parliamentary debate in autumn 2025. The PPF will watch the Bill’s passage before confirming the final position on the 2025/26 levy. While billing is on hold, mean scores will...

According to TPR’s press release, the sum recovered acts as compensation for monies removed from Dundee-based packaging firm Discovery Flexibles Ltd ( Discovery Flexibles) while its pension scheme was in deficit. The monies exited Discovery Flexibles via management charges and dividends, or as loans to other companies, across the period 2008 to 2019. TPR confirmed that extracting monies from Discovery Flexibles caused ‘material detriment’ to its pension scheme — the Danapak Flexibles Retirement Benefits Scheme (the Scheme). Discovery Flexibles was transferred to new owners in 2019. In the press release, Gaucho Rasmussen, Executive Director of Regulatory Compliance at TPR, stated that this case reflects their commitment to protecting savers and safeguarding the integrity of the pensions system......

Original news Mr N ( CAS-76635- M4T9)—26 March 2025 Summary The Deputy Pensions Ombudsman dismissed a grievance regarding a transfer into a pension liberation arrangement. At the material time, the Scheme acted in accordance with prevailing guidance. No red flags were detected, and, on the balance of probabilities, the member would have gone ahead in any case, even had a Scorpion leaflet been provided. This outcome highlights the need to consider whether any omissions within the due diligence process would, in reality, have changed a member’s decision to transfer. Accordingly, the complaint was rejected. What were the facts? Mr N was a member of the Legal and General Personal Pension Scheme (the Scheme). In February 2013, the Pensions Regulator issued its ‘ Scorpion’ guidance, warning about the dangers of pension scams......

Original news Mrs R ( CAS-130671- J8K3)—18 March 2025 Summary The Pensions Ombudsman sided with a complainant over the handling of death benefits. The trustee did not carry out sufficient enquiries into every potential claimant to a dependant’s pension. Disproportionate weight was given to the member’s will, instead of assessing financial dependence. The trustee also failed to fairly evaluate an ex‑spouse for a discretionary lump‑sum death benefit, despite prima facie signs of dependency. This decision reinforces that trustees must undertake appropriate enquiries when determining death benefits. What were the facts? Mr L belonged to the Wellcome Trust Pension Plan (the Scheme). On his death, his survivors included Mrs R, Mr E, Ms K and Mrs N. Mrs R, his mother, had a home bought for her by Mr L, who also paid her council tax. Mr E was his brother and a co‑executor of the will. Mrs N, his former...

Original news Mr N ( CAS-97668- M6M1) —18 March 2025 Summary The Pensions Ombudsman dismissed a grievance concerning discretionary pension uplifts. Under the Scheme’s provisions, a pre‑1997 pension could be increased by the trustee, but only with the employer’s agreement. The employer declined to consent, pointing to the Scheme’s funding position. Without that approval, the trustee could not grant an increase. As the employer had followed an appropriate procedure when reaching its conclusion, the Pensions Ombudsman would not overturn that outcome. This matter highlights the significance of proper process in any decision‑making. What were the facts? Mr N was a pensioner member of the Royal Pharmaceutical Society of Great Britain Staff Pension Scheme (the Scheme)......

Original news Mr T ( CAS-45233- Y4G1)—17 March 2025 Summary The Pensions Ombudsman upheld a complaint concerning incorrect records and a lag in putting them right within the Scheme. The pension scheme took an exceptionally lengthy period to correct an erroneous record. The Pensions Ombudsman concluded this amounted to maladministration and, because of the drawn‑out delay, a £3,000 award was justified to acknowledge the exceptional distress and inconvenience experienced. This decision serves as a reminder that, in exceptional cases, the Pensions Ombudsman can grant awards exceeding £2,000 for exceptional distress and inconvenience, underscoring its willingness to recognise such impact. What were the facts? Mr T was a member of the Fee Paid Judicial Pension Scheme (the Scheme). Mr T received a benefit statement from the Scheme in question......

Pensions Schemes Newsletter for July 2025 In its July 2025 Pensions Schemes Newsletter, HMRC said it has issued refunds after processing 12,767 claims lodged between 1 April 2025 and 30 June 2025 by people overcharged under pension flexibility rules. Since the government introduced retirement saving freedoms in 2015, the cumulative amount repaid for pension overtaxation has climbed to more than £1.4bn. These freedoms permit pension scheme members aged 55 and above to take lump sums or draw flexible payments from their pension savings. However, because of a peculiarity in the tax calculation, many savers are initially charged more tax than they truly owe when they first access their pension pots......

On 30 July 2025, a press statement, the Corporate Strategy (2025–2028) and Corporate Plan for 2025/26 were issued, where TPO said it would consider legislative changes to help it raise further funds. TPO, an independent non-governmental body that handles the investigation and resolution of complaints and disputes about the administration and management of workplace and personal pension schemes, is financed by the Department for Work and Pensions ( DWP). The DWP recovers these funds through a general levy on pension schemes administered by the Pensions Regulator......

HM Revenue and Customs ( HMRC) stated in an update that the combined value of tax and National Insurance ( NI) relief on pension contributions increased to £52.5bn in the 2023/24 tax year, up from £50.1bn in the previous corresponding period. These figures are likely to intensify talk of a raid on pension tax relief by Chancellor Rachel Reeves in the Autumn Statement, which she is expected to present between late October and early November 2025. Tom Selby, Director of Public Policy at investment platform AJ Bell, said that, with Rachel Reeves hemmed in by an ever-tightening fiscal straitjacket, the chancellor faces an ever more frantic hunt for the tens of billions of pounds likely still required to honour her ‘cast iron’ borrowing rules in the budget......

Funding, surplus and investment Government urged to amend Pension Scheme Bill’s reserve powers to allow pension funds access to private markets through investment trusts On 25 July 2025, the Association of Investment Companies ( AIC) published a press note and an accompanying letter, dated 22 July 2025, to Torsten Bell, Minister for Pensions, urging changes to the current Pension Schemes Bill mandation provisions. The AIC asked the government to enable pension funds to invest in private assets via investment companies, also known as investment trusts, which are presently outside the scope of the Bill’s proposed reserve powers. As drafted, the Bill would grant the government reserve powers to require defined contribution ( DC) schemes to allocate a share of their assets to UK private investments. However, the AIC argues that, in its current form, the legislation would stop DC schemes from meeting any...