7 Days is a weekly round up of developments in pensions, normally published on Monday mornings. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

Pension Schemes Act 2026 receives Royal Assent

After a period of Parliamentary “ping pong”, primarily over the “mandation power”, the Pension Schemes Act 2026 (“PSA26”) received Royal Assent on 29 April 2026.

The PSA26 is the culmination of the Government’s policy drive towards having “fewer, bigger, better run schemes” which will be able to “boost investment in the UK” and improve returns for savers. It introduces a package of measures which are intended to modernise the pensions system, drive economic growth and improve retirement security. See our Alert for further details.

The potential remedy for dealing with issues arising from the Virgin Media case came into force immediately, but detailed regulations will be required to implement many of the reforms. A revised roadmap setting out the timetable for reform is expected shortly.

CDC code of practice laid before Parliament

On 29 April 2026, the new code of practice for CDC schemes was laid before Parliament along with an explanatory memorandum. The code, which has been expanded to cater for unconnected multi-employer CDC schemes (“UMES”), sets out TPR’s expectations of CDC schemes, the authorisation criteria and how TPR will use its powers in the CDC market. It is expected to come into force in mid-October, replacing the existing CDC code.

TPR has also published its response to the consultation on the draft code. As the original proposals were “broadly welcomed”, limited changes have been made. TPR has identified several areas where further guidance would be helpful, including fees and assessment of IT systems, and plans to publish this “before the summer”.

Discussions are already underway with several possible UMES market entrants, and TPR expects that these schemes could be operating from early 2027. Future expansions of the CDC code also seem likely, with a response awaited to the DWP’s proposals for creating retirement-only CDC arrangements.

Bill to cap pensions salary sacrifice receives Royal Assent

The National Insurance Contributions (Employer Pensions Contributions) Act 2026 received Royal Assent on 29 April 2026. As announced at the Autumn Budget 2025, it lays the groundwork for a new cap on the tax concessions available on pensions salary sacrifice contributions from 6 April 2029.

Regulations will set a “contributions limit” (cap) for each tax year, starting at £2,000 for the 2029-30 tax year. Contributions up to the cap will be exempt from NICs, with employee contributions above the cap being treated like other employee workplace pension contributions and made subject to employee and employer NICs.

Much of the detailed operation of the changes will be set out in regulations and, as yet, there is no indication of the timing for these. Further guidance will be published ahead of April 2029. See our Alert for further details.

PDP updates on connection progress

With six months until the final connection deadline of 31 October 2026 for pensions dashboards, PDP has given an update on connection progress in a blog and press release. The blog brings together information on FAQs such as changing a scheme’s connection date, and encourages providers and schemes to review their plans. It notes that connecting directly is a complicated process and is likely to take longer than six months, so PDP considers it is “unlikely to be a viable option” for those that have yet to start. The voluntary connection process for schemes not legally required to do so is in development.

Trustees and scheme managers are reminded that “connection is not the end of the journey”, with continuing duties including “maintaining connectivity and ensuring their data remains accurate and complete”. PDP signposts to further guidance on its connection hub and TPR’s recently updated dashboards guidance.