Current issues - June 2025

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

Government fires starting pistol for pension reforms

On 29 May 2025, the Government laid out plans for extensive pension reform. They came in the form of the Final Report from the Pensions Investment Review, and the outcomes of three consultation exercises: on unlocking the UK’s defined contribution (DC) pensions market for growth, making the Local Government Pension Scheme in England and Wales fit for the future, and the options for defined benefit (DB) schemes. 

D’accord

The Government announced, on 13 May 2025—to a loud flourish from the Downing Street brass section—the signing of the Mansion House Accord. Seventeen workplace pensions providers, accounting for approximately 90% of active defined contribution (DC) pots, thereby stated their determination to boost investment in private markets, both in general and within the UK in particular, by 2030—subject to the Government meeting its end of the bargain.

Dashboards news  

The Pensions Administration and Standards Association (PASA) has released an AVC Toolkit for schemes with multiple administrators that will need to connect to the pensions-dashboards system. It gives the regulators' expectations, and their perspectives on cases in which the different administrators are unable to connect on the same date. 

Just dropped in to see what condition my conditions were in

Responding to questions in Parliament, the Pension Minister has confirmed that the Department for Work and Pensions (DWP) is still considering the desirability of amending legislation that, in 2021, imposed new conditions upon the statutory right to transfer. The rules have been criticized for impeding entirely proper transfer attempts. 

US Trade Policy & Market Volatility

The Pensions Regulator has produced guidance to help trustees respond to uncertainty in the markets, with separate recommendations for defined benefit (DB) and defined contribution (DC) schemes. The gist of the advice is, broadly, that trustees should review their governance and operational resilience arrangements, maintain open communication channels with scheme sponsors and advisers, and be vigilant for fraudsters targeting anxious members.

Research on sacrificing salary sacrifice

His Majesty’s Revenue and Customs (HMRC) has published research it commissioned on employer use of salary sacrifice for pension contributions. The study involved interviews with 51 employers, 41 of which offered pension salary sacrifice arrangements.

If you have any queries about this publication, please get in touch. 

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.