Here is our weekly summary of key legal and regulatory developments relevant to occupational pension schemes that you might have missed, with links for further information.
Along with its final response to consultation, The Pensions Regulator (TPR) has published a new enforcement strategy. The new approach is designed to reflect the more prudential style of regulation that TPR has been moving towards. It sets out a high-level, principles-based framework that allows TPR to respond to risks faster and act earlier to prevent harm. It integrates enforcement with TPR’s supervision and market oversight work, and says that it centres its focus on delivering outcomes for members. TPR says that it aims to be proportionate, accountable, consistent, transparent and targeted in its enforcement approach. It will act early where it can, take a risk-based, outcome-focused approach and target deterrent action where it counts, focusing on the greatest risks and harms to members. TPR notes that this approach will give it flexibility to adapt to changing priorities and risks more swiftly while achieving statutory objectives. The underlying enforcement policies and guidance will be reviewed and developed as new legislation and regulations come into force.
In line with its updated pensions roadmap, and following on from the Pension Schemes Act 2026, the Department for Work and Pensions (DWP) has published a consultation document relating to the framework and digital infrastructure for multiple default consolidators in relation to small pots, including appropriate eligibility criteria and potential exemptions within the system. Pensions minister, Torsten Bell, notes that the intention is to have small pot consolidation operational from 2030. The DWP is expected to publish its response to consultation during Q2 of 2027. Consultation closes at 11:59 p.m. on 17 November 2026.
TPR has published its occupational defined benefit (DB) scheme funding analysis 2026. The analysis provides an overview of funding levels and recovery plans in occupational DB and hybrid pension schemes in the UK. The publication is based on tranche 19 schemes, with effective valuation dates from 22 September 2023 to 21 September 2024 inclusive. The key findings are that 67% of schemes reported a surplus position in tranche 19 on a technical provisions basis. This compares with 39% in tranche 16. The average (mean) assets to technical provisions liabilities ratio for schemes in tranche 19 was 106% (median: 104%). This compares with 94% (median: 95%) in tranche 16. The average (mean) recovery plan length for schemes in deficit was four years (median: 3.2 years), with a median end date falling in 2027, while the average (mean) recovery plan length in tranche 16 was 5.7 years (median: five years). TPR notes that this is the last year that the analysis will be produced in this format, given that all subsequent valuations will fall under the new DB funding code. TPR is still formulating how future analyses will be presented.
The Society of Pension Professionals (SPP) has published a paper, "In praise of contingent assets". This argues that contingent assets deserve renewed attention. Adrian Bourne, co-chair, SPP Covenant Committee says that “properly designed, they are not simply technical funding devices or insolvency protections. They are flexible risk-sharing instruments that can strengthen member security while preserving sponsor flexibility and supporting sustainable covenant outcomes”. The paper looks at the broader picture and includes some useful case studies.
New research from the Money and Pensions Service has found that two in five people (41%) aged 55-65 have no financial plan for later life. In response to this, it has launched a new retirement guidance tool to help with understanding options, estimating retirement income and finding information on where to get help and support.
UK Private Capital has published three reports on “Defined Contribution (DC) Pensions & Private Capital: The State of the Market”, “The Local Government Pension Scheme (LGPS) & Private Capital: An Evolving Landscape” and “Understanding UK DC Pension Schemes: A Practical Guide for Private Capital Firms”. The first report on DC pensions found that evidence to-date indicates that actual allocations from default funds into private markets remain very low. The most recent update of Mansion House Compact signatories found that as of February 2025, only 0.6% of assets under management by signatories were allocated to private markets, while a UK Private Capital survey of venture capital and growth equity firms could only identify two legally binding commitments. UK Private Capital notes that with the ambition to reach significant allocations into private markets by 2030, now only a few years away, further action is needed. The LGPS report found that there was a strong commitment across the system for supporting regional growth and maintaining investment in private capital, but there are ongoing challenges over local investment targets and investment ticket sizes. There are challenges in relation to LGPS investments small enough to include lower and mid-market private capital funds, along with challenges around the regional investment requirements where private capital firms cannot guarantee a specific level of investment in one region or locality.
Large-scale redundancy exercises can create significant legal, operational and reputational challenges for businesses. Careful planning and effective execution are essential to minimise risk, ensure compliance and support successful business outcomes. Register for a webinar on 7 October 2026, in which our UK Labour & Employment colleagues will provide some practical tips for dealing with these challenges.
If you would like specific advice on any of these issues or anything else, please contact a member of our Pensions team.
