Current Issues October 2025

PPF Levy

The Pension Protection Fund has confirmed it will impose no conventional levy for the 2025/26 year, saving around £45 million for nearly 5,000 defined benefit schemes and their sponsoring employers. The decision follows recent changes in the Pension Schemes Bill, which provide the PPF with greater flexibility to set the levy—including reducing it to zero.  The PPF Board says this move offers clarity and relief for schemes while preserving the power to reinstate the levy if needed in future.

Pension Schemes Bill

The Pension Schemes Bill completed its Commons Committee stage on 11 September, with all Government amendments accepted. The Pensions Minister confirmed that the Government intends to introduce an amendment to abolish the PPF administration levy.  The levy, reinstated earlier this year despite the PPF’s significant surplus, has been controversial. It is expected to remain in place for 2025/26, but the Government’s planned amendment should ensure this is the final year it is collected.

TPR on LDI Oversight

The Pensions Regulator’s new market oversight report finds that pension schemes are far better prepared for LDI risk than before. Since the 2022 gilt crisis, the size and duration of leveraged exposures have shrunk, and interest-rate buffers have been raised to around 300 basis points. Many schemes now use pre-agreed asset sale plans.  Still, TPR warns that trustees should watch for concentration in collateral assets and maintain flexibility in liquidity plans. Many schemes will not need to take further action at present, but trustees should stay alert to evolving expectations around resilience testing and governance.

TPR warns of ‘Impersonation Fraud’

The Pensions Regulator has issued a new “industry alert” after reports of fraudsters using hacking and impersonation to access pension accounts. Almost a third of cases involved bypassing scheme defences. Fraud methods noted included hacking e-mail accounts and exploiting weak or reused passwords. The alert notes that members should use multi-factor authentication, keep their contact details up to date and report any suspicious activity to Action Fraud to protect themselves.

Trustees may wish to review member communications to reinforce fraud awareness and prevention.

Virgin Media

The Financial Reporting Council will develop technical guidance to assist scheme actuaries involved in remediation following the Virgin Media judgment. This follows new clauses added to the Pension Schemes Bill. The guidance, prepared with industry bodies, will help actuaries confirm that historic benefit changes met required standards and will be issued when the legislation takes effect.