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.
New draft legislation for Virgin Media "fix"
The government has published draft amendments to the Pension Schemes Bill, including provisions addressing issues following the Virgin Media decision (which held that certain amendments made by schemes that were contracted-out on a section 9(2B) basis between 1997 and 2016 are void unless a necessary actuarial confirmation was provided).
The drafting sets out a process under which schemes can remedy the voiding of an alteration for lack of confirmation. This will require an actuary to confirm that it is reasonable to conclude that the alteration would not have prevented the scheme from continuing to satisfy the statutory standard at the time. Remedies are not available where "positive action" has been taken by trustees to say that they consider the alteration to be void for non-compliance, or where legal proceedings have already been brought to consider validity of an alteration.
A High Court decision is expected shortly, which may further clarify the scope of the issues.
Action: Review any Virgin Media-related projects in light of these developments.
New corporate identity verification and filing requirements from November 18, 2025
From November 18, 2025 identity verification will be compulsory for new directors and Persons with Significant Control (PSCs) of companies; existing directors and PSCs will need to verify their identities with their next annual confirmation statement (read more in our pensions update from August 11). There will also be changes to company register requirements (read more in our pensions update from August 18).
Action: Corporate trustees must comply by the relevant deadlines. Voluntary verification ahead of the deadlines is encouraged by Companies House
Draft legislation on pensions and inheritance tax
The government has published a consultation response, policy paper and draft legislation on bringing pensions into the scope of inheritance tax (IHT) from April 6, 2027.
Key points to note are:
- Death in service benefits will fall outside the scope of IHT.
- Personal representatives (not pension schemes) will be responsible for reporting and paying any IHT due.
- Schemes will be subject to new duties, including a "scheme pays"-style mechanism for settling IHT bills.
A call for evidence has been launched, looking for input on the legislation—see "Have your say" below.
Action: The exact scope of the changes remains unclear in some aspects; contact your usual A&O Shearman adviser for further information.
Have your say
- The House of Lords Finance Bill Sub-Committee has launched a call for evidence on the draft legislation aimed at bringing pensions into the scope of IHT from April 6, 2027 (see above). The deadline for submitting evidence is October 7, 2025.
- The Pensions Regulator (TPR) is consulting on its proposed new enforcement strategy, aiming to deliver a more risk-based and outcome-focused approach. Responses should be submitted by November 11, 2025.
- The Data (Use and Access) Act will amend the Data Protection Act 2018 to require organisations to provide a mechanism for receiving and dealing with data protection complaints. The ICO is consulting on draft guidance setting out the new requirements and covering actions before, during and after a complaint. The consultation closes on October 19, 2025.
Pensions academy online: Tuesday, October 7 and Thursday, October 9, 2025
Our next Pensions Academy Online webinars will take place on Tuesday, October 7 and Thursday, October 9, 2025. Each webinar begins at 9:30am and will last approximately one hour. If you would like to attend, please register here.
We will be covering:
- Legal update—Tuesday, October 7, 2025: We'll round up all the latest developments and outline what's on the pensions horizon.
- Pensions 2030 and beyond: preparing now for the future landscape—Thursday, October 9, 2025: We're facing significant change across the UK pensions landscape and more could be coming. We'll look at the big picture from the perspectives of trustees, employers and members, to help you plot a route from here to there.
Watch this space
- The government intends to consult on trustee accreditation and governance later this year.
- Regulations allowing multiple unconnected employers to establish a CDC scheme are expected in the autumn.
- The Data (Use and Access) Act (DUA Act), which makes amendments to the UK General Data Protection Regulation and Data Protection Act 2018, 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 regulations have been made bringing parts of the act into force but further regulations setting out details and bringing the remainder of the act into force are awaited.
- 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.
