Whilst several UK businesses have been reassured by the news that the government will introduce legislation to deal with issues arising from the Virgin Media judgment, many are still monitoring the situation whilst awaiting the final legislative details.

The government recently confirmed that it would introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards, given the increased uncertainty seen in following last year’s judgment in Virgin Media Limited v NTL Pension Trustees.

Industry experts at the time suggested that there would be a "collective sigh of relief" following the news, which was particularly welcomed by those who worked on the campaign encouraging change from the government. 

The impact of this government update is also now being seen in businesses' interim reports and accounts, as several companies have confirmed that they are no longer expecting any changes to their scheme as a result of the government intervention. 

Rolls-Royce, for instance, confirmed that "as a result of this government intervention, the group does not anticipate any scheme amendments or additional liabilities".

Heathrow's half-year results also suggested that the announcement should "dissolve any uncertainty", confirming that the group is not aware of any expected effect on the scheme.  

Rathbones' interim results took a similar position, as the group said that the government's announcement provides "comfort" that any instances of historic non-compliance with Section 37 may be rectified in the future.

However, it acknowledged that the details behind the government's intentions are not yet available, confirming that it will continue to monitor the situation. 

"The Rathbone 1987 Scheme was never contracted out and so is not impacted by this ruling; however, there could be a potential impact on the Lawrence Keen Scheme if any amendments are found to be invalid and the legislation introduced by the government does not provide the expected ability to retrospectively amend the position," the interim report stated.

And not all businesses and schemes are as convinced, as Newcastle Building Society's half-year report pointed out that "while this legislative solution is anticipated to remove the requirement for provisions related to void benefit changes, neither the timing nor precise scope are confirmed". 

"Until enacted, there remains significant uncertainty as to whether the judgements will result in additional liabilities for UK pension schemes and the society cannot be certain of the potential implications (if any) and therefore a sufficiently reliable estimate of any effect on the obligation cannot be made, however it is possible that the defined benefit pension obligation could be materially increased," it stated.  

A number of businesses are also waiting to see the final detail of the legislation, as Reach and Inchcape also confirmed that, whilst they do not expect an impact on their pension schemes, they will continue to monitor the impact of future developments.

But this wait could prove problematic for some, as DLA Piper partner, Matthew Swynnerton, previously warned that, in the meantime, schemes that are currently in the process of buying out face a dilemma.

"Should they pause the wind-up until the legislation is passed so that they can address any Virgin Media issues and ensure that the correct benefits are insured and minimise residual risk?" he stated.

Internal work to gauge the potential impact of the ruling is also still ongoing for some schemes, however, as Aston Martin Lagonda Global Holdings' interim results confirmed that it is still assessing whether any amendments to section 9(2B) rights were made that were not in accordance with section 37 of the Pension Schemes Act 1993 requirements (as at 30 June 2025).

"Further, it is not currently possible to reliably estimate any potential impact to the defined benefit obligations of the pension schemes if these amendments were not in accordance with section 37 of the Pension Schemes Act 1993 requirements," it stated.

"The directors continue to assess the extent of procedures required to confirm if there is any indication of historic non-compliance."

Lloyds Banking Group's half-year results also confirmed that the group is carrying out a review of scheme amendments to decide whether any subsequent actions are required, stating that it will continue to monitor developments.

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