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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.
Finance Act receives Royal Assent
The Finance Act 2026 has received Royal Assent. The Act will bring most pension benefits into the scope of inheritance tax (IHT) from April 6, 2027. This will require schemes to have new processes for calculating relevant benefits; communicating with personal representatives; withholding payment of benefits; and paying tax directly. Further HMRC guidance is expected.
Action: Schemes should start now to prepare for significant changes needed to comply with the new IHT requirements.
Guidance on Virgin Media confirmations
The Financial Reporting Council (FRC) has published non-mandatory guidance for actuaries on giving confirmations under the Pension Schemes Bill (PSB) to validate historic alterations. This follows the Virgin Media decision, which held that historic variations to certain contracted-out schemes were void where it could not be shown that a necessary actuarial certificate had been provided.
The FRC guidance encourages actuaries to take a proportionate approach in assessing whether they can give a confirmation. It sets out factors actuaries should consider when deciding how much data they need, and includes helpful examples.
Action: Unless there is a need to address Virgin Media issues quickly, keep a watching brief: the provisions of the PSB are still to be finalised; TPR guidance for trustees has been promised ‘in spring’; and a court decision is awaited which may impact which amendments need confirmation.
New data complaints processes
Most of the provisions of the Data (Use and Access) Act 2025 (DUAA) have now been brought into force. These changes include a requirement for data controllers to have a process in place to deal with data protection-related complaints from June 19, 2026. This includes: providing a complaint form which can be completed electronically; acknowledging receipt of the complaint within 30 days; responding to the complaint without undue delay; and communicating the new right to complain in privacy notices, SAR responses and at other points. The ICO has published guidance to assist data controllers.
Action: Ensure appropriate processes are adopted to identify and respond to complaints in line with these requirements; and review privacy notices and other communications.
PPF final levy rules
The Pension Protection Fund (PPF) has published its levy policy statement and final rules for 2026/27, confirming no levy for conventional schemes. Schemes are still required to submit an annual scheme return submission in full via Exchange, including s179 valuations and asset-backed contribution information, but will not need to provide other information previously submitted to the PPF.
Action: Ensure scheme returns and relevant information are submitted.
DC scale requirements guidance
The DWP and The Pensions Regulator (TPR) have produced tandem guidance on the upcoming requirements for DC multi-employer AE schemes to operate a main scale default arrangement holding at least GBP25 billion in assets from 2030.
Action: Affected schemes should consider the guidance in their preparations for compliance.
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: Review rules to confirm whether changes flow through automatically; schemes and employers should make sure family leave policies and procedures reflect these updates.
TPR warning on impersonation fraud
TPR has issued a scam alert setting out steps schemes should take following a significant increase in impersonation fraud targeting pension savers.
Action: Review the alert and implement the actions recommended by TPR.
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 Money and Pensions Service (MaPS) is consulting on dashboards reporting standards. The deadline for responses has been extended to April 30, 2026.
Watch this space
- The government is taking steps to amend the Pension Schemes Bill to enable it 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 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.
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