Tariffs – Market impact: Investment markets have been volatile in recent weeks following the announcement of planned tariffs by the US. Global equity markets initially dropped by over 10%, with the announcement of a 90 day pause leading to a partial recovery. Gilt yields initially fell due to moves into safe haven assets, although this has now reversed. US treasury yields have also been increasing adding pressure to the US Government to compromise on tariffs. We expect markets to remain volatile in the coming weeks as the US continues to evolve its position on tariffs.
We would urge Trustees against any kneejerk reactions to the market moves and suggest any concerns are raised with your investment consultant.
Blumont Annuity Enters UK Bulk Annuity Market: Blumont Annuity has launched operations to provide bulk annuity solutions to UK pension schemes, following regulatory approval from the PRA and FCA. A subsidiary of Brookfield Wealth Solutions, Blumont will offer an additional option for schemes looking to buy out liabilities. The firm enters a growing market, with significant demand expected over the next decade, and aims to support schemes of all sizes in managing risk.
Regulation – Chancellor announcement: The Chancellor has published an action plan aimed at ensuring regulators support economic growth through targeted and proportionate regulation. For The Pensions Regulator, planned actions include reviewing master trust capital requirements, developing an innovation framework and testing hub, reducing unnecessary reporting in scheme returns, and encouraging consolidation and investment in productive assets, supported by voluntary disclosure of asset allocation data. Changes are expected to roll out by 2025/2026. Given the year on year increase in questions on the Scheme Return, adding to scheme costs, it will be interesting to see whether meaningful action is taken.
Regulator Confirms Funding Plan Agreed for MGN Pension Scheme: The Pensions Regulator has confirmed that the MGN Pension Scheme will be fully funded on a technical provisions basis by January 2028. The outcome follows regulatory engagement after the trustee and Reach plc were unable to agree the 2019 valuation within the statutory deadline. Although the matter was referred to the Regulator’s enforcement team, powers were not used as both parties later reached agreement on the 2019 and 2022 valuations. The funding plans involved an improved Recovery Plan, plus a greater share for the Scheme under an existing dividend sharing arrangement.
Professional Trustees – TPR to introduce oversight framework: The Pensions Regulator will introduce a new oversight framework for professional and sole trustees this year, reflecting their growing role in scheme governance. It will examine areas such as employer relationships and decision-making responsibilities. Targeted engagement with selected trustee firms will begin over the summer, with wider oversight to follow by year-end. The Regulator has already reviewed key aspects of 11 major firms, including ownership, skills, and potential conflicts.
PPF publishes its 2025-28 strategic plan: The Pension Protection Fund has set out its key strategic priorities for the next three years in its latest strategy document. The key areas of interest to schemes are creating a framework that allows for a zero levy but also enables the levy to be reintroduced if it becomes necessary and considering changes to the PPF administration levy. There will also be a review on whether increases could be provided to pre 97 pensions. These are welcome proposals for schemes.
