Passing of the Pension Schemes Bill: Hymans Robertson comments

Commenting on the passing of the Pension Schemes Bill, Calum Cooper, Head of Pensions Policy, Hymans Robertson says: 

“Last night’s passage of the Pension Schemes Bill into law marks a landmark moment for UK pensions policy. The new Pension Schemes Act 2026 will provide a clear signal and enabler of intent to modernise the system, improve outcomes and better align pensions with the UK’s long-term economic ambitions. 

“The Act lays important foundations for reform, particularly around scale, consolidation and the potential use of defined benefit surpluses, which, implemented well, will ensure the pensions system works harder both for individuals and the wider economy.  

“However, the passage of the Act is the end of the beginning. Its ultimate success will depend on the design and delivery of secondary legislation, and on how these reforms are translated into clear, workable regulation. Getting the detail right will be critical to ensuring schemes, trustees and employers can engage with confidence, while safeguarding better member outcomes.  

“This is a rare opportunity to turn pensions into a more effective force for good. The focus must now shift to the next phase of reform, with pragmatic, well‑sequenced regulation that enables schemes and employers to act with confidence and ambition.” 

Commenting on the Pension Schemes Bill, Alison Leslie, Head of DC Investment, said:

“We welcome the government’s focus on improving member outcomes through the Pension Schemes Bill, particularly the clarity on the investment‑related measures aimed at potentially unlocking better long‑term outcomes for savers. Clarity and consistency now matter more than ever. Crucially, the new ‘best interests’ test creates a clear route for trustees and providers to seek a waiver recognising that asset classes such as private markets need to be assessed over a longer time horizon and always through the lens of fiduciary duty.

“The proposed changes to the asset‑allocation requirement (“mandation”) represent a pragmatic shift. Broadening the range of qualifying investments to include infrastructure, constraining when the power can be used and clarifying timeframes and  requiring government to consider competitive and other barriers are all sensible steps."

Commenting on the Pension Schemes Bill, Robbie McInroy, Head of LGPS Client Consulting, says:
 
“We welcome the passing of the Bill and look forward to the next stage. This legislative process has provided a valuable opportunity to examine the LGPS in detail, rightly focusing attention on its scale, societal contribution and long‑term success - while also identifying where further improvements can be made.
 
A major positive is that the Bill enables the long‑awaited Good Governance reforms to move into delivery. These proposals build on well‑established work across the LGPS and are intended to strengthen clarity of roles, consistency of standards and accountability - essential foundations for a scheme operating at this scale and complexity. We also agree with the Government that wider considerations around valuation and employer costs are best addressed through consultation and established statutory mechanisms.
 
However, context matters. LGPS funds and pools are already delivering an exceptional volume of change - spanning investment reform,  governance, reporting and administration transformation - while continuing to run business as usual for millions of members and thousands of employers.
 
As attention now turns to secondary legislation, it will be critical that implementation timelines are realistic and carefully sequenced, with care taken to retain strong local accountability and transparency as reforms are taken forward. The LGPS has a strong track record of successful reform, but sustaining that success depends on change being deliverable in practice, as well as well‑intentioned. Getting this next stage right will protect what the LGPS already does extremely well, while ensuring it remains fit for the future.”

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