01 June 2026
7 mins
Welcome to the latest edition of Current issues. This month, we cover a wide range of developments shaping the pensions landscape. From the UK Pensions Commission giving its initial views on adequacy to the 2026 DB Annual Funding Statement. Below, we’ve highlighted key issues from this month’s publication. Click here to view the full edition.
The UK Pensions Commission’s interim report was published on 19 May 2026. It warns that many millions of people, particularly low- and middle-income earners, the self‑employed, women and members of some ethnic groups, are facing hardship in retirement, and that changes are needed if the pensions system is to meet expected demographic and economic challenges.
The Pensions Regulator issued its 2026 Annual Funding Statement (AFS) for private-sector defined-benefit (DB) schemes. The central theme is an echo of previous AFSs, with funding improvements spurring a shift of attention from deficit reduction to endgame planning.
With the passing of the Pension Schemes Act 2026, the Financial Reporting Council (FRC) has published a finalised version of its guidance for actuaries on the statutory solution to the issues raised by the Virgin Media litigation. The FRC has made only minor, clarificatory amendments to the interim guidance published in January 2026.
His Majesty’s Revenue and Customs (HMRC) published a Technical Note (Inheritance Tax on pensions) and consultation-draft Registered Pension Schemes (Provision of Information) (Amendment) Regulations 2026, connected with the significant forthcoming changes to the inheritance tax treatment of pensions on death. The draft Regulations would establish extensive new rules for sharing of information among scheme administrators, deceased persons’ personal representatives, and benefit recipients, and new obligations to report matters to HMRC. The Technical Note gives scheme administrators (in the tax world, usually trustees) more details of how HMRC expects the pensions-IHT process to work.
The Ministry of Housing, Communities and Local Government announced the outcome of its consultation exercise on draft secondary legislation to implement the 'Fit for the Future' reforms to the Local Government Pension Scheme. On the same day, two sets of Regulations were laid in Parliament, and will come into force on 30 June 2026. Guidance will be published 'in time for the regulations coming into force'.
The Pensions Regulator published an AI Plan, in which it lays out its expectations for use of artificial intelligence within the workplace-pensions industry. It highlights the need for sound trustee governance, quality-assurance activity, risk management, scam awareness, data quality and protection, and professional advice.
The associated press release says that detailed guidance is coming later in the year.
*No. No, it wasn’t. But then, that’s just what our new robot overlords would say, isn’t it?
Pension Schemes Newsletter 181, from His Majesty's Revenue and Customs (HMRC), contains articles:
announcing the mothballing of the Pension Schemes Online service, from April 2027 (the exact date of closure is to be decided; any remaining open schemes should be migrated to the successor Managing Pension Schemes service by 31 December 2026).
advertising the recent publication of an inheritance tax technical note and draft Provision of Information (Amendment) Regulations (see our separate article in this issue).
giving some updates and reminders for relief-at-source scheme administrators.
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.
Our roundup of the latest news and trends in pensions, investments, trusteeship and scheme management.
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