02 October 2026
10 mins
Welcome to the latest edition of Current Issues. This month, we cover a wide range of developments shaping the pensions landscape. From the DWP's proposals for the automatic consolidation of small DC pots, to Prime Minister Andy Burnham's plan to constrain the State Pensions triple lock. Below, we’ve highlighted key issues from this month’s publication. Click here to view the full edition.
The Department for Work and Pensions (DWP) has published proposals for the ‘building blocks’ of a system for automatic consolidation of small defined-contribution (DC) pots, which would take effect in 2030. The basic elements include details of the authorization and supervision of consolidator schemes, the process that will lead to consolidation, and the digital infrastructure that will enable it. Responses to the consultation will help to shape the DWP’s implementation of the system.
The Department for Work and Pensions (DWP) is consulting on proposed amendments to the secondary legislation on conversion of guaranteed minimum pensions (GMPs) into ordinary scheme benefits. The exercise is intended to clarify the GMP conversion process and help those who would like to use it to achieve equalization for GMP disparities.
The proposed changes would affect the minimum benefits that converted schemes must pay to deceased members’ survivors, determine when and which employers must consent to conversion, and provide an alternative process for actuarial certification of individual conversion calculations.
The House of Commons Work and Pensions Committee has called for evidence for an inquiry into the adequacy of automatic-enrolment minimum contributions.
The Department for Work and Pensions (DWP) is proposing to hold fixed-rate revaluation of guaranteed minimum pensions (GMPs) at its current rate of 3.25 per cent. The outcome of the consultation exercise will determine the annual revaluation, until GMP age (60 for women, 65 for men), of the GMPs of those who leave pensionable service after 6 April 2027.
In a speech at the Labour Party Conference, Prime Minister Andy Burnham announced a plan to constrain the State pension 'triple lock', to save money that could be spent instead on social-care reforms. More detail was subsequently given in a 10 Downing Street press release.
Legislation for the triple-lock change would be put in place during this Parliament, but it wouldn't be implemented until April 2030. The current triple-lock mechanism would be maintained for the rest of this Parliament (the next general election is due to be called by August 2029 at the latest).
The Pensions Regulator has published a 'Market Oversight' report based on the findings of a survey of private-markets investment. It concludes that trustees and their advisers are generally open to the idea, and that there's evidence of larger defined contribution schemes making inroads (but generally less enthusiasm in the defined-benefit world, for understandable reasons). The report identifies factors that may be holding trustees back from more involvement, and closes with some steps that it thinks trustees ought to consider taking.
The Pensions Regulator has updated its approach to enforcement, following a 2025 consultation exercise. It has also responded in a separate document to comments received in response to the exercise.
The Regulator says that the revised policy ‘introduces a more focused, agile and outcomes-driven model that is better aligned with the changing risks in the pensions landscape, with a stronger emphasis on delivering real-world results’. Those results ‘include improvements in member security, governance and administration standards, and confidence in the pensions system'.
Pension Schemes Newsletter 185, from His Majesty’s Revenue and Customs (HMRC), has articles on
circumstances in which trustees may still need to submit a pension scheme tax return after they've told HMRC that the scheme has wound up.
a proposed change to the taxation of the parts of some lump sum death benefits in excess of the lump sum and death benefits allowance—tax would still be charged at the recipient's marginal rate, but the excess wouldn’t count as pension income for other tax purposes.
the shuttering of Pension Schemes Online in April 2027, and the consequential need to ensure that schemes are migrated to the successor Managing Pension Schemes service, or wound up.
annual returns that are overdue from some relief-at-source scheme administrators, how to file them, and the consequences if they don’t (claims they’ve submitted for interim payments of tax relief on member contributions claims won’t be processed).
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 round-up of the latest news and trends in pensions, investments, trusteeship and scheme management.
Opens in new window Download publicationWe pride ourselves on being thought leaders and are constantly discussing the many issues facing and shaping our industry. Sign up to find our current thinking on topical issues.
Opens in new window Subscribe
