Pensions Bulletin 2025/15

Pensions Regulator publishes climate adaptation report 

The Pensions Regulator has published its 2025 climate adaptation report, required under the Climate Change Act 2008. The report covers the risks from climate change that are most relevant to trust based occupational pension schemes, the policies and practices to address them and progress since the last report in October 2021 (see Pensions Bulletin 2021/46). 

This latest report is the contribution of the Pensions Regulator to the national assessment of the UK’s resilience to climate change and supports the UK’s Third National Adaptation Programme.

Introducing the report, Nausicaa Delfas Chief Executive at the Pensions Regulator, says that the Regulator will continue to: 

• educate and support trustees, questioning their decisions where appropriate; 
• enforce against trustees of schemes failing to meet statutory duties relating to climate change and ESG; 
• encourage trustees of schemes in scope to go beyond the regulatory minimum and build their capacity in managing climate change and wider sustainability risks; and 
• work with government, regulators and industry on initiatives to improve industry’s management of climate and ESG risks. 

In the accompanying press release, the Regulator singles out (again) small DC schemes, calling on recent survey data to support its view that there are too many small DC schemes where trustees' knowledge of the scale of financial risks posed by climate change is limited. As a result, the Regulator calls (again) on those trustees to upskill or consider consolidating in savers’ interests.

Pensions Regulator uses AI to detect scam sites

The Pensions Regulator has announced that, along with the Pension Scams Action Group, it has developed an AI tool to detect scam websites and to date has reviewed 830 websites, taken down 29 high-risk sites and made 94 referrals to partner agencies. The Regulator notes that pension scams are frequently facilitated by scam websites.

There is also mention of a new Fraud and Cyber Crime Reporting and Analytics Service that will replace Action Fraud when it is launched later this year. This new service will “result in fundamental service improvements to how intelligence is gathered nationally from multiple sources and speed up the analysis of reports, and how quickly they are sent to police forces for investigation”.

The Regulator also calls on schemes to continue to report scams to Action Fraud until the replacement service is launched, as it is concerned that recent survey data show only 11% of DB and DC schemes are currently reporting scams to Action Fraud.

In a separate development, the Fraud Compensation Fund has published some tips for individuals to help them spot fraudulent communications. This comes after it has recently been made aware of a scam where some scheme members are being sent fraudulent letters, claiming to be from the Fund, asking them to claim their Fraud Compensation Fund payments.

Pensions Regulator issues pension saver videos to push schemes to get dashboard ready  

The Pensions Regulator has announced the publication of four short YouTube videos, in which pensions savers emphasise that having information about their pensions in one place could make a significant difference to their retirement planning. It is sharing these videos on its social media channels and with industry stakeholders as it is concerned that the pensions industry, taken as a whole, has not made sufficient preparations for pensions dashboards. 

The Regulator points to its tracker survey published in March 2025, saying that while eight in 10 schemes say they are on track to connect in line with dashboards on time, one in four still hold some form of non-digital dashboard data, and many schemes hold out of date information on the value of savers’ pensions. 

The Regulator says that all 2,700 schemes with dashboard obligations have a date to connect to the system, with the first batch connecting in April 2025 and all having to connect by October 2026. It goes on to say that it is supporting schemes in preparing for their dashboard duties through regular communications, awareness campaigns and engagement and later this year it will be engaging with schemes to understand in more depth the quality of their data. 

PRAG examines Virgin Media impact on pension scheme accounts 

The Pensions Research Accountants Group has issued to its members a discussion paper outlining its understanding as to how the FRS 102 contingent liability disclosure requirement and the 2018 Pensions SORP may need to be applied, in relation to the Virgin Media case, for pension scheme accounts. This is a separate matter to the potential impact on sponsor accounts on which the Institute of Chartered Accountants in England and Wales recently issued a note of considerations (see Pensions Bulletin 2025/07). 

After the necessary introductions the discussion paper looks at three scenarios – where no disclosure is required, where a narrative contingent liability disclosure is necessary and where a financial provision in the scheme’s financial statements is the appropriate way forward. 

PRAG’s discussion paper concludes with seven questions on which it would like its members’ assistance, before it issues any formal guidance. Feedback is requested by 9 May 2025 and PRAG initially intends to collate views for a report at its summer meeting.

PASA updates buy-in and buyout data readiness guidance 

The Pensions Administration Standards Association has announced the release of an updated and expanded version of its guidance on data readiness for buy-ins and buyouts. This guidance should be read in conjunction with that issued in February 2023 (see Pensions Bulletin 2023/08) which it appears is not being withdrawn.

The original guidance covered a number of critical areas, including key data items, the consequences of holding incomplete and poor-quality data and actions which should be taken to demonstrate good governance and ‘quick-wins’. It concluded with the thought that good planning leads to certainty and preferential pricing. 

PASA says that the 2025 guidance offers deeper insight into the data elements insurers typically consider critical for ensuring a smooth and successful transaction. PASA also says that as the guidance can’t cover every unique circumstance those responsible for managing data strategies should always consider scheme-specific needs and work closely with professional advisers to tailor plans accordingly

PPF panel appointments announced 

The Pension Protection Fund has announced the latest appointments to its Trustee Services Panel and for its new Restructuring and Pre-Insolvency Services (RPIS) Framework. 

Four providers are named as continuing to provide trustee services for both underfunded and overfunded schemes during the assessment period, as part of the PPF’s Trustee Services Panel. 

Eleven providers, including LCP, are named for the RPIS Framework which aims to support stressed schemes at the pre-insolvency stage.