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

In this 7 Days

Pension Schemes Bill is published

Following on from three recent pensions papers, the Pension Schemes Bill began its Parliamentary journey on 5 June 2025. A wide range of measures are covered, including:

  • subject to “stringent funding safeguards”, a power for DB trustees to pass a resolution amending their scheme rules allowing greater flexibility over the use of any surplus
  • having been subject to a TPR interim authorisation regime, a legislative framework for commercial DB superfunds
  • requirements for a new VFM framework for trust-based schemes, mirroring the FCA’s proposals for contract-based arrangements announced last summer
  • automatic consolidation of small DC pots worth £1,000 or less “into a small number of large, good value schemes”
  • subject to a transition pathway for smaller schemes to get up to scale, as well as providing for regulations to set out various exclusions, DC providers and master trusts will have to have £25bn in assets under management in at least one large “Megafund” default arrangement by 2030
  • in order to simplify retirement choices, new duties will be placed on trustees to offer a retirement income solution or range of solutions.

The Government has also published a roadmap, setting out its timetable for reform, with the Bill expected to receive Royal Assent in 2026. Consultations on draft regulations to introduce many of the measures are then expected follow, with the aim of all changes being in force by the end of 2030. However, timings are “very much indicative”.

See our recent Alert for further information.

Government intends to legislate for Virgin Media

On 5 June 2025, the Government announced plans to legislate to give schemes affected by the Virgin Media case “the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards”. With the announcement light on specific detail, we assume the Government will use existing powers to make regulations.

TPR publishes new DB endgame guidance

On 3 June 2025, TPR published new guidance for trustees and employers of DB and hybrid schemes who are exploring endgame options for their scheme. The guidance covers running on the scheme, the different financial, governance and insurance options available, as well as the various issues to consider when using these solutions. A series of case studies is also provided to aid decision-making. For all the options, TPR expects trustees to take certain steps “at the very least”, including:

  • seeking “appropriate and proportionate” professional advice
  • assessing the impact of the options on the employer’s covenant
  • understanding the extent to which any option entails some loss of trustee control and taking appropriate advice to ensure compliance with their fiduciary duties
  • managing any conflicts of interest appropriately
  • carrying out a full risk assessment of the relevant options and considering how these risks can be mitigated.

TPR to launch new trusteeship strategy

TPR is planning to launch a new strategy to “drive up standards of trusteeship”. In a speech given on 5 June 2025, TPR’s Chief Executive, Nausicaa Delfas, said the strategy would bring trusteeship into line with other professions and corporate governance standards, to ensure they are ready for the “transformational impact” of the Pension Schemes Bill. The new strategy will be based on five key trustee traits: being saver-outcome focused, open to constructive challenge, acting with skill and diligence, collaborative yet accountable, and data-led. It will set out TPR’s priorities and how it seeks to raise standards of trusteeship through its compliance and oversight approach with the market.

TPR will also work closely with the Government on its planned consultation on trusteeship and governance later in the year, particularly looking at the regulatory environment to make sure it is “fit for the future”.

TPR exercises its power to modify scheme rules

Under its powers under existing legislation, TPR has made an order authorising the trustee of a scheme in wind-up to modify its rules to allow the assets remaining after the scheme liabilities have been fully discharged to be distributed to the sponsoring employer. All members’ benefits had been secured in full and the trustees had also secured benefit enhancements for members. Without such a modification, the remaining surplus would have been trapped in the scheme. Whilst every decision depends on the specific circumstances, with so many schemes managing surpluses, this is a useful decision for trustees with prohibitive scheme rules.

FRC publishes revised Stewardship Code

Following a recent consultation, the FRC published the UK Stewardship Code 2026 on 3 June 2025, along with draft guidance. The new code takes effect from 1 January 2026 and “aims to support long-term sustainable value creation while significantly reducing the reporting burden for signatories”. No existing signatories will be removed from the signatory list during 2026, to give them time to familiarise themselves with the new format. Key features include an “enhanced” definition of stewardship, a reduced reporting burden and new “targeted principles” for different types of signatories.

PLSA updates retirement living standards

On 3 June 2025, the PLSA published its updated retirement living standards. They show a decrease in the cost of the “minimum” retirement lifestyle, down to £21,600 per year for a two-person household, due to the impact of lower energy prices and changes in the public’s expectations. Meanwhile, the “moderate” and “comfortable” standards have risen modestly, reflecting the impact of inflation across many expenditure categories offset by decreases in energy costs.