Yesterday (5 June) saw the publication of the Pension Schemes Bill 2025 in addition to a roadmap for workplace pensions and an announcement on both the Virgin Media ruling and the second phase of the Pensions Review. PP takes a look at what has happened.
The Pension Schemes Bill 2025
Yesterday morning, the government announced it would be publishing the Pension Schemes Bill in a bid to deliver better returns for savers and create "bigger and better pension funds". The bill was laid in parliament yesterday afternoon.
Among other things, the bill will introduce a value for money (VfM) framework for defined contribution (DC) schemes; create DC ‘megafunds' of at least £25bn; consolidate small DC pots; simplify retirement choices; provide additional surplus flexibilities for DB schemes; legislate for DB superfunds; and "consolidate and professionalise" the Local Government Pension Scheme (LGPS).
The industry has welcomed the introduction of the ‘blockbuster' and 'pivotal' bill - hailing it as a ‘once in a generation' opportunity for workplace pensions.
Read:
- The Pension Schemes Bill 2025
- Pension Schemes Bill laid in parliament
- Industry welcomes 'blockbuster' and 'pivotal' Pension Schemes Bill
- No final regime for surplus flexibilities until 2027 but minister says schemes can begin work now
Workplace pensions roadmap and Pensions Review II
The government also published its roadmap for workplace pensions yesterday – setting out the overarching aims for reform as well as the sequencing and timing of the implementation of the legislative package.
The government said the roadmap, which accompanied the Pension Schemes Bill, aims to give pension schemes and providers with a sense of the direction over the coming five years.
Pensions minister Torsten Bell said his priority was to have these changes underway but also looked forward to launching the second phase of the Pensions Review "shortly".
He said: "This will focus on the adequacy of retirement incomes and the fairness of the system that has persistent inequalities within it. It is 20 years since the Turner Commission, and it is time to build on that legacy by completing the job."
Read:
- Workplace pensions: a roadmap
- Govt publishes roadmap for workplace pensions; second phase of Pensions Review to launch shortly
Virgin Media ruling
The government will introduce legislation to deal with issues arising from the Virgin Media v NTL Pension Trustees judgment, the Department for Work and Pensions said yesterday.
In a statement, the government said it was aware that, following last year's Court of Appeal judgment in Virgin Media Limited v NTL Pension Trustees Limited, there was increased uncertainty in the pensions industry.
It said it recognised that schemes and sponsoring employers need clarity around scheme liabilities and member benefit levels in order to plan for the future.
The government said it would therefore introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards.
It added that scheme obligations will otherwise be unaffected.
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