Current Issues - May 2025

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

DB annual funding statement

On 29 April 2025, the Pensions Regulator issued its Annual Funding Statement for 2025, concerning private-sector defined benefit (DB) schemes. Its main themes are endgame planning, use of surplus, and market volatility; and it provides helpful guidance on questions arising from the new funding rules on matters such as the assessment of employer covenants and supportable risk, and what ‘proportionality’ might mean in practice.

Decluttering DC pots

The Department for Work and Pensions (DWP) has confirmed plans to establish a mechanism for the automatic consolidation of small, deferred defined-contribution (DC) pension pots, and revealed some of the policy decisions that will shape the new system.

Parliamentary proceedings

The denizens of Westminster touched on pensions issues several times during the month of April.

See the full publication for highlights on: Statutory indexation (or absence thereof); Fiduciary duty; Responses to W&PC recommendations and; Multi-employer CDC.  

PPF plugs priorities

The Pension Protection Fund (PPF) has published its strategy for 2025 – 28. Its priorities for this period include; working with the Government on levy-legislation amendments, reviewing its indexation levels and preparing to make data available to the pensions dashboards.

Kapow! Exploding DB superfund myths

The Pensions Regulator has published a blog on the process of transferring members into a DB superfund. It aims to dispel some 'misconceptions' about the expectations that it has for trustees in such cases. The blog reflects on experience from the first three superfund transfers and addresses some ‘friction points’ that 
were observed.

HMRC newsletters

Highlights from Pension Schemes Newsletter 169, from His Majesty’s Revenue and Customs.

Quis custodiet ipsos custodes?

The Pensions Regulator announced plans for a 'framework for oversight of professional trustees'. It also  published a market oversight report based on work with 11 of the largest trustee firms.

You’re NIC’d

The legislation implementing the Budget-announced changes to employer National Insurance Contributions (NICs), received Royal Assent on 3 April and came into force from 6 April 2025. The National Insurance Contributions (Secondary Class 1 Contributions) Act 2025 provides for a 1.2 percentage points increase in the rate of employer NICs (raising them to 15% of relevant earnings), and a lowering of the earnings threshold for liability (from £9,100 to £5,000 p.a.).

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.