Current Issues - April 2025

Please see excerpts below from this month's Current Issues. Click here to read the full publication. 

DC oversight shake-up

The Pensions Regulator announced changes to its supervision of defined contribution (DC) master-trust schemes. It says that they will allow speedier identification of emerging risks, and help make DC master trusts into ‘the gold standard in pensions provision.’ It’s part of a move towards a more prudential approach, under which the Regulator will be watchful for system-wide risks, in addition to scheme-level ones.

Recruiting regulators to galvanize growth

His Majesty’s Treasury (HMT) published a policy paper on getting the various parts of the UK’s regulatory system to support growth and innovation. The paper contains, amongst other things, a list of pledges that the regulators and HMT think can be achieved over the coming year to expedite growth and investment.

Low-key intervention gets results

The Pensions Regulator published a short regulatory intervention report for the MGN Pension Scheme, after the trustee and sponsor failed to agree on the details of the 2019 and 2022 actuarial valuations by the statutory deadlines.

Covered by a FIG relief

Late-stage amendments to the Finance Bill 2024/25—which has now received Royal Assent, becoming the Finance Act 2025—will affect entitlement to contributions tax relief for those affected by the abolition of the ‘non-dom’ tax regime. 

LGPS update

Government reins in rates & adjustments reviews

The Ministry of Housing, Communities and Local Government (MHCLG) has written to administering authorities of the Local Government Pension Scheme (LGPS) in England and Wales about its intention to amend legislation that permits variations to rates and adjustments certificates, otherwise than in connection with actuarial valuations. The MHCLG is concerned that the variation power is being used inappropriately, in some cases, to manage emerging funding surpluses (or deficits).

 What can I say except, ‘You’re welcome’?

The LGPS Advisory Board for England and Wales wrote to Torsten Bell MP, welcoming him to the Pensions Minister role that he took up in January 2025. 

Dashboards news

First schemes ready to go

The Pensions Dashboards Programme (PDP) has announced that three of its approximately twenty volunteer participants—one large pension provider, an integrated services provider and a third-party services provider—have now gone through all the stages required to connect to the pension dashboards ecosystem.

Making connections

The PDP has published a set of FAQs to help trustees and scheme managers understand how to connect to the dashboards via a third party, such as an integrated service provider or third-party administrator.

Elevating standards

The PDP’s Data, Technical and Reporting standards, as well as its Code of Connection, have been approved by the Department for Work and Pensions and the Northern Ireland Department for Communities. The Design standards remain in draft form for the present as they are only relevant for commercial dashboards. The 
documents can all be found on the Standards page on the PDP’s website.

Growing pensions: this year’s revaluation in full bloom

Spring is in the air – bringing longer days, blooming flowers, and, of course, the annual shower of increase and revaluation of statutory instruments.

HMRC newsletters: March 2025

An update on Pension Schemes Newsletter 168, from His Majesty’s Revenue and Customs.

 

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This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice 
(including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.