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Welcome to our monthly update on current legal issues for trustees of DB and hybrid pension schemes, designed to help you stay up to date with key developments between trustee meetings and to support the legal update item on your next trustee agenda. We also have a separate DC-only briefing.
TPR: revised administration guidance
The Pensions Regulator (TPR) has published new guidance outlining steps that trustees, scheme managers and administrators should take to comply with the administration module of its Code of Practice. The guidance applies to both DB and DC schemes, replacing a previous DC-only version.
It sets out more detailed requirements for schemes, including formal policies and prioritising data, a stronger IT/automation/cyber focus, and tighter administrator engagement and oversight.
Action: Review the new guidance to identify further steps that could be taken to improve governance of scheme administration—schemes undertaking their own-risk assessment may wish to build some of these steps into their future plans.
TPR: revised data guidance
TPR has published revised guidance on member data. The guidance consolidates all previous data-related guidance into one place and is intended to set out clearer expectations (including best practice examples) to help schemes achieve better data management.
Action: Consider whether your scheme is complying with TPR's expectations.
Autumn Budget—pensions announcements
The chancellor announced in her autumn Budget the introduction from April 6, 2029 of an annual cap of GBP2,000 on the amount of pension contributions that are exempt from National Insurance Contributions (NICs) through salary sacrifice. Draft legislation has been published on this. The Budget also announced changes to earlier proposals to bring pensions into the scope of inheritance tax (updates to the previous draft legislation have been published) and that it will make changes to allow payments from scheme surpluses to be made directly to members from April 2027.
Action: Employers operating salary sacrifice may want to review these arrangements. Keep a watching brief on inheritance tax and surplus changes.
Family leave changes
A number of changes are being made to family leave, including introducing new entitlements to paternity leave on the death of the mother/adopter of a child and changing parental and paternity leave criteria.
Action: We expect the changes to flow through automatically in most scheme rules, but schemes and employers should make sure family leave policies and procedures reflect these updates.
CDC regulations and consultations
Regulations will come into force on July 31, 2026 allowing unconnected employers to participate in Collective Defined Contribution (CDC) arrangements (where investments are held in, and benefits paid from, a collective fund, providing a non-guaranteed target annual income). TPR is also consulting on a new code of practice that will replace the existing CDC code, to make it suitable for these new schemes. This follows a consultation on allowing transfers into a CDC scheme at retirement, which could provide a decumulation option in line with the forthcoming guided retirement framework.
Action: Consider whether CDC could be of interest to your scheme, in particular in light of upcoming guided retirement requirements.
TPO factsheet on overpayments
The Pensions Ombudsman (TPO) has published a factsheet for members on what happens when a pension has been overpaid. TPO is asking schemes to share this information with members.
Action: Check whether administrators are updating processes to provide this information.
Have your say
- The government has launched a consultation on trusteeship and governance, looking at various issues including trustee appointment and tenure, accreditation, professional trustees, and how to improve administration. The deadline for responses is March 6, 2026.
- The FCA and TPR have published a joint paper consulting on the proposed framework enabling assessment and comparison of value for money in DC arrangements. The consultation closes on March 8, 2026.
Watch this space
- The pensions minister has announced that he intends to consult on legislation that will allow the government to develop statutory guidance for trustees on their fiduciary duties, aimed at supporting trustees in considering factors including systemic risks (such as climate change) and members' standards of living.
- The Data (Use and Access) Act (DUA Act) has received Royal Assent. Changes include helpful tweaks to deadlines for responding to data subject access requests and new requirements around handling data protection complaints. Some parts of the Act are in force but further regulations setting out details and bringing the remainder of the Act into force are awaited.
- The government has announced that it intends to consult in the coming months on issues around transfer advice, potentially including the cost and availability of independent financial advice and the GBP30,000 threshold that triggers a requirement for independent advice on a DB transfer.
- There is currently no date for revised regulations on changes to the notifiable events regime.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
