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Pensions update: Investment Review finalised; DC megafund scale, VFM and LGPS pooling reforms via forthcoming Pension Schemes Bill; DB surplus extraction changes; HMRC salary sacrifice research; PASA identity assurance guidance

Published on: 29 May 2025

Published by a LexisNexis Pensions expert
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In this issue:

  • Funding, surplus and investment
  • Members and benefits
  • Trustees, governance and administration
  • Daily and weekly news alerts
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Funding, surplus and investment

Pensions Investment Review: Final Report published alongside three consultation responses as government proceeds with investment and surplus extraction reforms

On 29 May 2025, the government released the Final Report of the Pensions Investment Review, initiated by the Chancellor on 20 July 2024. While presenting its findings, the government stresses this represents only one strand of its wider pensions reform programme. In brief, the Review sought to curb fragmentation in the defined contribution (DC) workplace pensions arena, channel more capital into productive assets, and lift savers’ outcomes, while also simplifying the Local Government Pension Scheme (LGPS) to realise its investment capacity. The Final Report confirms that the changes will allow DC schemes and the LGPS to harness consolidation and scale, thereby securing stronger returns for UK savers, supporting LGPS sustainability, and increasing pension fund investment in productive assets...

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