United Kingdom: Retirement, Superannuation & Pensions

The UK pensions landscape is undergoing significant transformation with the Pension Schemes Act 2026 receiving Royal Assent, introducing sweeping changes from DB surplus payments to DC consolidation frameworks. New legislation also targets salary sacrifice arrangements exceeding £2,000 annually, while TPR unveils expectations for multi-employer CDC schemes and dashboards guidance addresses operational challenges.

The Finance Act 2026 introduces fundamental changes to how inheritance tax applies to pension death benefits from April 2027, shifting most lump sum payments into deceased members' estates while creating new reporting obligations for personal representatives and scheme trustees. Understanding these changes is critical for pension trustees who must now prepare their administration processes, governance frameworks, and member communications to comply with the new regime.

The Pension Schemes Bill has today received royal assent. Two weeks of parliamentary ping-pong ended last night, when the House of Lords agreed "mandation" measures following a series of Government concessions.

The Pensions Regulator is urging trustees of smaller defined contribution schemes to evaluate their capacity to meet upcoming legal requirements under the Pension Schemes Bill, including default decumulation pathways and value for money assessments. With increased governance demands on the horizon, TPR suggests that consolidation or wind-up may better serve member interests for schemes lacking the resources to comply with these significant new duties.

The Finance Act 2026 has received Royal Assent. Its key pensions-related provisions introduce changes to the inheritance tax (IHT) treatment of lump sum death benefits paid by registered pension schemes.

Welcome to our quarterly pensions litigation briefing, designed to help pensions managers identify key risks in scheme administration and trustees to update their knowledge and understanding.

All payments in lieu of notice (PILONs) are subject to income tax and national insurance contributions (NICs) in full.

Welcome to your weekly update from the A&O Shearman Pensions team, covering all the latest legal and regulatory developments in the world of workplace pensions.

As the UK pensions landscape continues to evolve at pace, 2026 is set to be another significant year for schemes, sponsors and savers.