It has been another busy week for pensions, with updates ranging from levy changes and funding rules to scheme resilience and investment strategies.

The Pension Protection Fund (PPF) confirmed that it will not charge a conventional levy in 2025/26, following the progress of the Pension Schemes Bill through parliament.

The decision has been broadly welcomed by the pensions industry as “positive news” and a “landmark moment which will deliver meaningful savings for DB schemes and their sponsors, while maintaining the important safety net the PPF provides to the industry”.

Talking of landmark moments, this week also marked three years on from the mini-Budget, which had industry experts reflecting on how schemes remain in a “much stronger position”.

Although many agreed the system now feels “safer”, pension professionals cautioned that its resilience will only become clear if the safeguards are tested in another bond crisis.

Concerns about resilience also came through in The Pensions Regulator’s (TPR) market oversight report, which looked at how well pension schemes are prepared for liability-driven investments (LDI) risk.

It found that while trustees are complying with the collateral guidance surrounding LDI, TPR said more work and greater focus are needed on diversification of collateral assets and resilience testing.

HMRC and the Financial Conduct Authority (FCA) added to the regulatory focus this week, issuing a joint statement on how tax legislation interacts with pension cancellation rights.

Industry figures warned that this evidence shows the risks members face if they rush to access tax-free cash without understanding the rules.

Policy debate gained attention this week, particularly around the Pensions Commission’s ongoing work on adequacy.

The Society of Pension Professionals (SPP) called on the commission for a policy reboot to keep defined benefit (DB) schemes open and fast-track collective defined contribution (CDC) schemes, highlighting how the long shift from DB to DC has widened retirement outcome gaps.

Meanwhile, PensionBee also called on the commission to tackle structural inequalities as it warned that millions risk retirement poverty unless the UK’s pensions system is “overhauled”.

In particular, it highlighted how women, carers, the self-employed, and low earners are being left behind by auto-enrolment and a complex, slow pensions market, and called for expanded coverage, faster transfers, and simple saving routes for the self-employed.

While policymakers debate the future, the market itself shows no signs of slowing, with analysis from LCP suggesting that the UK bulk purchase annuity (BPA) market is heading for another record-breaking year, with more than 350 deals expected in 2025 and volumes set to top £40bn for the third year running.

While the bulk purchase annuity market thrives, the broader pensions landscape is also evolving.

In defined contribution (DC) pensions, innovation is accelerating: Standard Life has launched a new default fund with up to 25 per cent allocated to private markets, while WTW’s 20th annual survey showed that charges are falling and employers are increasingly focusing on retirement outcomes and decumulation.

For DB schemes, meanwhile, the updated Funding Code is continuing to present challenges a year on from its introduction, with Aon’s analysis of the first round of valuations under the new framework finding that many UK schemes are still adapting, highlighting the practical challenges of regulatory change.

The spotlight also fell on the Local Government Pension Scheme (LGPS) this week, where reforms and stewardship remain under review.

Pensions UK warned that “time and patience” are needed for these changes to bed in, particularly if UK schemes are to invest in alternatives in the same way Canadian funds do.

Its warning comes as LGPS funds face growing scrutiny on responsible investing, the London Pensions Fund Authority (LPFA) reported this week that it now manages over 80 per cent of its £8bn fund with climate risk and engagement targets across most asset classes

In line with this increased focus on responsible investment in local pension schemes, Monmouthshire County Council reviewed its holdings linked to alleged breaches of international law in Gaza.

The week’s developments, from scheme resilience to ethical and climate-focused investing, highlight the ongoing challenges and opportunities in pensions.

As National Savings Week comes to a close, it serves as a reminder of how individual decisions can shape retirement outcomes and the importance of regularly reviewing pension plans.

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