Virgin Media S37 issues
The Government has now acted on the issues arising from the Virgin Media judgments, through amendments to the Pension Schemes Bill published on 1 September 2025. Four new sections set out when past rule changes are treated as “potentially remediable” and introduce a new, less demanding actuarial confirmation test. In some situations — for example, where schemes are already wound up — rule changes will automatically be deemed valid. The measures are designed to resolve uncertainty created by past litigation and are expected to become law two months after Royal Assent.
Pension Schemes Bill
Parliament is back, and the Pension Schemes Bill is now under detailed scrutiny by the Commons committee. A wide range of amendments has been tabled, with some of most significance for DB schemes. These include proposals to broaden surplus release provisions (with CPI increases to be applied first), new powers on discretionary indexation of pre-97 benefits, and changes to how DB deficits are reported in company accounts. For DC schemes, amendments on scale and asset allocation targets may also reshape expectations. Trustees should watch for further developments.
Pension Transfers – Ombudsman update
The Pensions Ombudsman has confirmed that, before the 2021 transfer regulations, trustees had no statutory, regulatory or common law duty to investigate potential scams where a member exercised a statutory transfer right. The case arose from a 2014 British Steel transfer that was later lost to a scam, but the Ombudsman found the trustee had met the limited legal requirements of the time. Guidance such as TPR’s 2013 “Action Pack” and the “Scorpion” leaflet did not impose extra duties. The Determination provides reassurance on historic cases — but highlights how significantly trustee obligations have since increased.
The Budget
The Chancellor has confirmed that the Autumn Budget will be delivered on Wednesday 26 November 2025, later than usual to allow updated forecasts from the Office for Budget Responsibility to be included. Speculation suggests pensions could be affected, with possible changes to tax relief, the tax-free lump sum and salary sacrifice arrangements being discussed as ways to address fiscal pressures. Cutting the tax-free lump sum alone could raise several billion pounds annually. Our December newsletter will consider announcements relevant to pension schemes that are made in the Budget.
Fraud Compensation Fund
TPR has announced that more than £80m has now been paid from the Fraud Compensation Fund to over 2,000 victims of pension scams across 58 schemes. The FCF is financed through a levy on pension schemes, so trustees should be aware their schemes are helping meet this cost. Further payments are expected. TPR’s message is clear: vigilance, reporting suspicions, and proactive steps to protect members remain essential.
