As we move through 2025, the pensions landscape continues to develop. This spring has brought with it various changes and updates across the industry which will affect both industry professionals and pension scheme members.
From the prospects of new legislation, the progress of consultations and the promise of artificial intelligence (AI), the changes highlight the dynamic nature of the pensions industry and underlines the importance of staying informed about the latest developments and their implications for the future.
The Pensions Investment Review
The Pensions Investment Review consultation which closed on 16 January 2025 has entered an important phase as the Government analyses the feedback received from the consultation. With the Chancellor's promise in her speech on the 29 January 2025 that the final report of the first phase of the review will be published during the spring, industry professionals are eagerly awaiting any word of further news as spring transitions to summer…
The Virgin Media Case
Following the recent discussions in relation to the Virgin Media case, industry professionals are closely monitoring the Department for Work & Pensions (DWP) and the Government generally as they actively consider their pitch for legislative intervention to address the retrospective approval of amendments affected by the lack of actuarial confirmation made void by the Virgin Media case. It currently remains unclear whether the DWP/Government will move forward with the industry's desire for legislation, however industry professionals remain hopeful.
In the meantime, the outcome of the Verity Trustees v Wood (TPT) case, which has been said to be expected after the autumn, seeks to provide the much-needed clarity to some of the unanswered questions raised by the Virgin Media case.
In addition, a notable discussion paper by the Pensions Research Accountants Group (PRAG) was published in April and highlights issues associated with the Virgin Media case from an accounting and company audit perspective. PRAG's request for views on this was closed on 9 May 2025. The purpose of this request was to help collate views for a report at the upcoming PRAG summer meeting.
The Pension Schemes Bill
The Pensions Minister has announced that he intends to lay the Pension Schemes Bill in parliament before the summer. The Bill seeks to target the wider changes outlined in the King's Speech in July 2024, including the automatic consolidation of defined contribution (DC) small pots, establishing the Value for Money Framework for occupational pension schemes and requiring DC occupational schemes to offer a default retirement income solution.
Artificial Intelligence
Artificial intelligence continues to be a significant topic this spring. In this quarter, the Pensions Regulator and the Pension Scams Action Group (PSAG) joined forced to create a new AI tool to detect scam websites and protect savers from online harm using machine learning technology algorithms with real-world data. And the Pension and Lifetime Savings Association (PLSA) submitted a response to the Treasury Select Committee's inquiry into the use of AI in financial services. In their response the PSLA highlighted the benefits and risks that AI can have for the pensions industry and explained that the PLSA has undertaken research into how the pensions industry is using AI for a report which they plan to release later this year. The report is said to provide guidance on AI for pension scheme trustees.
Staying informed about these developments is crucial for navigating the evolving pensions industry and we will continue to keep a close eye on the changes as the months progress.
If you would like to discuss anything raised in this blog in more detail, or for support in making an application to the Pensions Regulator, please get in touch with a member of the pensions team or your usual Brodies contact.
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