UK Pensions: What’s new this week? September 28, 2026

TPR report on barriers to private market investment

The Pensions Regulator (TPR) has published a report setting out its findings from engagement with more than 40 key stakeholders—including investment consultants, trustees and industry bodies—on the appetite for, and barriers to, private market investment by UK occupational pension schemes. Key themes include:

• Master trusts are making progress. Most master trusts already had some exposure to private markets as at December 31, 2025, although material allocation levels were less common.
• DB schemes have limited appetite. Favourable funding levels and the desire to retain end-game flexibility limit interest in committing new capital or increasing existing private market allocations for most DB schemes.
• Key barriers remain. TPR identifies a number of barriers: a potential knowledge gap among trustees and advisers; tension between fiduciary duties and setting hard allocation targets; regulatory restrictions; market uncertainty; concerns around fee transparency and reporting; and lack of a pipeline of suitable opportunities.

TPR gives a number of actions expected of trustees, including: reviewing board knowledge, capabilities and time allocated to considering wider investments; developing appropriate investment governance and risk controls for private market investments; assessing adviser resources, capabilities and objectives; and considering how their scheme may change over the next five to ten years.

TPR will use its regulatory approach to challenge trustees on their investment strategy and governance capabilities through supervisory engagement, while also supporting industry initiatives that help remove barriers and improve access to suitable investment opportunities.

Read the TPR report and related TPR press release.

TPR: Master Trust Bulletin

TPR has published its September Master Trust Bulletin with further commentary on its private market investment report (see above). The bulletin also covers a wide range of issues including:

• A case study looking at solutions to issues around members losing guaranteed benefits and tax protections on transfer to a master trust.
• Updated significant event J guidance (with a new traffic-light reporting system) is expected next month.
• Scheme Financial Templates have been updated. DC master trusts should ensure that the revised template is incorporated into their sign off and reporting processes ahead of their next SFT submission.
• An update on progress with pensions dashboards and a focus on cyber risks from email use in scheme governance (particularly the use of personal email accounts).
• Expectations on future-proofing trustee boards, including updating skills matrices and ensuring boards have sufficient capacity as well as capability.
• Sharing good practice, both for administration reporting and from trustee board and committee observations. 

Read TPR’s Master Trust Bulletin.

HMRC: Latest Pension Schemes Newsletter

HMRC has published its latest Pension Schemes Newsletter (no. 185) which includes a statement that the government will legislate to simplify the taxation of certain lump sum death benefits paid in excess of the lump sum and death benefit allowance. Any tax due will still be charged at the beneficiary’s marginal rate, but the amount above the allowance will no longer count as pension income for other tax purposes. No further details have been provided but it appears that the intention is to address certain circumstances where the special lump sum death benefits charge applies. 

The newsletter also covers: scenarios in which a scheme might have to submit a pension scheme return despite having informed HMRC that it has wound up; action needed to migrate schemes before the closure of the Pension Schemes Online service in April 2027; and requirements for annual returns for relief at source. 

Read HMRC’s Pension Schemes Newsletter 185.

Pensions Academy Online: Tuesday, September 29 and Thursday, October 1, 2026

Our next Pensions Academy Online sessions take place this week on Tuesday, September 29 and Thursday, October 1, 2026. Each webinar begins at 9:30am and will last approximately one hour. We will be covering:

Legal update—Tuesday, September 29, 2026 

Our regular round-up of all the latest developments in the legal corner of the occupational pensions world. 

AI: the good, the bad and the future—Thursday, October 1, 2026 

We are thrilled to welcome Cliodhna Judge, TPR’s external market oversight lead for emerging governance topics, including cyber and AI, for a session exploring what artificial intelligence means for UK pension schemes. Cliodhna will join Francesca Parnell, counsel at A&O Shearman, to explore the opportunities, risks and regulatory direction of travel. Expect insights on where AI can help your scheme and members, the risks to watch out for, and what TPR expects from schemes today and into the future. 

Click here to register for either or both sessions.