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.
We mentioned in a previous weekly update that a recent survey by the Society of Pension Professionals (SPP) showed that 100% of respondents are now using AI, up from 87% last year, and most respondents expect to see an increase in usage. Referencing the SPP’s survey, The Pensions Regulator (TPR) has published its AI Plan, with guidance expected to follow in the summer. The plan outlines the risks and benefits of using AI in the provision of pension services, and sets out TPR’s expectations for trustees, scheme administrators and scheme managers, particularly around good governance and data use and quality.
The government has published its outcome of technical consultation on its “fit for the future” reforms to the local government pension scheme. The reforms are “designed to unlock the investment potential of the scheme through further consolidation, build on the scheme’s successes as a local investor and improve the governance of local pension funds to ensure stronger oversight, capability and accountability”. The Pension Schemes Act 2026 contained the framework, while the technical consultation covered the regulations that provide the detail relating to governance and pooling. The regulations have now been laid before Parliament, and will be in force from 30 June 2026. Separately, the government has said that updated statutory guidance (anticipated to include guidance around fiduciary duties, which may inform the guidance expected for private sector schemes) will be published soon, before the new regulations come into force.
The Financial Conduct Authority has published the tenth edition of its regulatory initiatives grid. It is a great source for identifying upcoming developments and legislation in the pensions arena, along with an expected timeline for bringing in those initiatives. The 16 initiatives relating to pensions start on page 51. New information, following TPR’s engagement with the professional trusteeship market, is that TPR will produce a market oversight report in September 2026, on professional trusteeship offerings and business models. Before that, however, the grid flags that TPR plans on publishing guidance throughout the year on specific risk areas of the professional trusteeship market, starting with guidance on appointing a professional corporate sole trustee in May 2026.
The Pension Schemes Act 2026 contained what has been colloquially referred to as the Virgin Media remedy. This provides that in many circumstances, if certain conditions are met, schemes that were formerly contracted-out on the reference scheme test basis will be able to treat otherwise invalid alterations as always having been valid. In response to this, both the Financial Reporting Council (FRC) and TPR published guidance for actuaries and trustees respectively. The FRC has now updated and published its final guidance for actuaries on the topic.
Join our colleagues in our Labour & Employment team who are holding a webinar on 17 June 2026. They will explore the key issues to consider when changing terms and conditions of employment, including the new restrictions on employers to change terms and conditions via the “dismissal and reengagement” route under the Employment Rights Act 2025.
If you would like specific advice on any of these issues or anything else, please contact a member of our Pensions team.
