🌿 World Mental Health Day 2025

At Hughes Price Walker, we care deeply about how people feel — today and every day.

Today marks World Mental Health Day 2025, with this year’s theme focusing on “Access to services – mental health in catastrophes and emergencies.” It’s an important reminder that mental health support should be available to everyone, especially in times of crisis.

World Mental Health Day is an opportunity to pause, reflect, and check in — with ourselves and with those around us. Remember, support is available, and you are never alone.

If you or someone you know is struggling, here are some free and confidential services available 24/7:

• Samaritans – Call 116 123 or email jo@samaritans.org
  Visit Samaritans

• Mind – Call 0300 123 3393 or text 86463

• Visit Mind 

• Shout – Text SHOUT to 85258 for 24/7 crisis support
  Visit Shout

• Papyrus HOPELINEUK – For under 35s, call 0800 068 4141 or text 88247
  Visit Papyrus

• CALM (Campaign Against Living Miserably) – Call 0800 58 58 58 or use their webchat

• Visit Calm

• NHS 111 – Call 111 and select the mental health option for urgent support
  Visit NHS Every Mind Matters 

Take a moment today to reach out, listen, or simply be there for someone — because every conversation matters. 💚

Regulatory Round-Up

The September 2025 Regulatory Round-Up from The Pensions Regulator (TPR) covers a wide range of updates, including administration standards, defined benefit (DB) scheme funding, pensions dashboards, and new enforcement strategies. It highlights improvements in DB scheme surpluses, shorter recovery plans, and lessons learned from the liability-driven investment (LDI) crisis. Trustees are also reminded of upcoming requirements such as valuation submissions and scheme return deadlines. These developments collectively reflect TPR’s push for higher governance standards and stronger scheme resilience.

One of the most pressing issues raised is the growing threat of pension scams and fraud. TPR warns that fraudsters are increasingly using illegally obtained personal data to gain access to members’ pension accounts. This kind of “account takeover” fraud poses a serious risk, as criminals can potentially redirect funds or manipulate transfers before trustees and providers realise what has happened.

Trustees and administrators are urged to treat this as a priority area, building stronger cyber defences, tightening verification processes, and monitoring unusual activity. Collaboration with regulators and industry bodies is also encouraged to share intelligence on emerging threats. Ultimately, while pensions policy and funding remain key themes, TPR’s strong focus on scams reflects the real and immediate danger to savers’ security in today’s digital environment.

PPF Levy Set to Zero - Major Savings for 5,000 UK DB Schemes

The Pension Protection Fund (PPF) has today announced that there will be no PPF levy charged for 2025/26. This decision puts £45 million back into the hands of nearly 5,000 UK defined benefit schemes and their sponsors.

Earlier this year, invoicing was paused to allow the Pension Schemes Bill to progress through Parliament. The Bill includes key measures that give the PPF greater flexibility in setting the levy. With the Bill now making strong headway and broad support across the industry, the PPF Board has recalculated this year’s levy to zero.

This early decision gives trustees and employers clarity and certainty for their financial planning this year. The PPF will consult on levy plans for 2026/27 later this autumn, once the Bill completes its passage.

Minister for Pensions, Torsten Bell, welcomed the move, saying:

“Rigid rules currently leave pension schemes paying millions into the Pension Protection Fund even when extra funding is not required. The Pension Schemes Bill will sweep away those constraints. This will support better funded pension schemes and greater investment by firms.”

Kate Jones, PPF Chair, added:

“I’m pleased that we’re able to save DB schemes £45m this year. The legislative changes we’ve needed to further reduce the levy have made good progress, giving us the confidence to act decisively for this year’s levy. As we reach this significant milestone on our journey to financial self-sufficiency, we recognise the invaluable contribution levy payers have made over the past 20 years. We couldn’t have delivered the protection and peace of mind to members without them.”

This marks a major milestone for the PPF and the DB sector, delivering real savings, supporting government reforms, and signalling a new era of financial self-sufficiency.

Press Release - Buy-in Success Achieved

Hughes Price Walker, a leading independent specialist provider of actuarial, consultancy, investment and administration services, today announced the successful completion of a £15 million buy-in transaction for a UK charity sector pension scheme.

The transaction secured the benefits of around 100 pensioners and 20 deferred members. L&G were selected as the insurer, with Osborne Clarke acting as legal advisor.

Ray Hughes, Director at Hughes Price Walker, commented: “Completed in under six months, this buy-in represents a significant step towards full buy-out and delivers real value for both members and the sponsoring charity. The terms secured were attractive and affordable, enabling the Trustees to eliminate substantial risk and future cost from the scheme. For the charity, this means greater financial certainty and the ability to concentrate more fully on its core charitable activities, while members gain the reassurance of long-term benefit security. Achieving this outcome so efficiently reflects the careful preparation of all parties and the benefit of experienced, specialist advice in a competitive market.”

Kai Hoffmann, Director, Pension Risk Transfer at Institutional Retirement, L&G added: “This transaction provided an excellent fit between the scheme’s objectives and our ability to deliver affordable terms using our Flow proposition for smaller pension schemes. We are very pleased to have supported this charity sector scheme, allowing the Trustees to lock in security for members and remove future cost pressures from the sponsor. Working closely with Hughes Price Walker, we were able to complete the buy-in efficiently and set the scheme on a clear path towards full buy-out.”

💡 It’s Pension Awareness Week!

Taking control of your retirement starts with being informed. Our video shares 5 essential pension tips to help you plan with confidence. 

🎥 Watch the full video and take charge of your retirement!

Mind the Gap: Rising State Pension Age and DB Schemes – a Growing Challenge for Retirement Incomes

With the State Pension age increasing, many DB scheme members are experiencing a widening gap between when their scheme benefits are paid and when the State Pension starts.
In his latest Pension Funds Online blog, Ray Hughes, Director & Consulting Actuary at Hughes Price Walker, examines the implications for members and what trustees and sponsoring employers can do to help them and highlights the need for stronger planning and communication.

🔗 Read the full blog here: https://lnkd.in/eJGi2wDV

Industry must support small schemes to end game, says Hughes Price Walker

PRESS RELEASE

20 August 2025

Hughes Price Walker, a leading independent specialist provider of actuarial, consultancy, investment and administration services, is calling on the pensions industry to do more to support smaller defined benefit (DB) schemes in accessing viable and efficient endgame solutions.

Ray Hughes, Director and Actuary at Hughes Price Walker, commented: “Many smaller DB schemes are already very well-run and, having gone through the right preparation, are actively engaging in endgame discussions – benefiting both scheme and members. But despite growing surpluses and strong governance, some still face barriers that slow down or complicate the path to buy-in or buyout. These are often structural; such as legacy systems, poor data, or limited insurer engagement - rather than inherent to the schemes themselves.

“Smaller schemes should not be disadvantaged by their size. With the right tools, advice and planning, they can, and increasingly do, achieve strong outcomes. But we believe the wider industry could do more to make that path smoother and more accessible - Regulators, advisers, and insurers all have a role to play.

“We should be looking at things like:

• Better insurer engagement strategies tailored to smaller transactions

• Wider adoption of streamlined insurer processes for small-scheme buy-ins

• Scalable and cost-effective administration and data improvement services

• Real-time funding and risk modelling tools suitable for smaller schemes

• Regulatory approaches that reflects the resource levels and risk profiles of smaller funds.”

Hughes added: “This isn’t about rewriting the rulebook – it’s about making sure the existing endgame playbook works for schemes of all sizes. If we don’t take steps now, there’s a real risk of creating a two-speed market where only the largest benefit fully from the opportunities of the endgame. Every member deserves the same focus on outcome security, regardless of scheme size.”

HPW’s Investment Market Review

Please find here HPW’s Investment Market Review of the second quarter of 2025.

For more information please contact Investment@hughespricewalker.co.uk

Kind regards

HPW investment

Supporting families in need – a visit to Baby Bank Network Bristol

Supporting families in need – a visit to Baby Bank Network Bristol

Yesterday, Helen and Giorgia from HPW had the pleasure of visiting Baby Bank Network in Bristol, where they were warmly welcomed by Co-founder and Chief Executive, Becky Gilbert. Becky gave them a tour of the warehouse and shared the inspiring work the charity does to support families in crisis with essential baby and child items.

We were delighted to donate some items from HPW to help contribute to their amazing efforts. Witnessing first-hand the dedication and care that goes into every package was truly humbling.

We're incredibly proud to support such a vital local charity. If you'd like to learn more or get involved, please visit: www.babybanknetwork.com

UK Government to introduce legislation for retrospective actuarial confirmation in pension schemes

The UK Government has announced plans to introduce legislation allowing pension schemes to retrospectively obtain written actuarial confirmation that historical benefit changes met necessary standards. This move comes in response to the Court of Appeal's judgment in Virgin Media Limited v NTL Pension Trustees Limited, which highlighted uncertainties in the pensions industry regarding past benefit alteration.

The forthcoming legislation aims to provide clarity for schemes and sponsoring employers, ensuring they can plan effectively for the future.  Importantly, expected scheme obligations will remain unaffected.

The official announcement is here: https://www.gov.uk/government/news/retrospective-actuarial-confirmation-of-benefit-changes

Commentary from HPW’s Managing Director, Ray Hughes

"The government's initiative to legislate for retrospective actuarial confirmation is a welcome development for the pensions industry.  It addresses the uncertainties that arose following the Virgin Media case, providing much-needed clarity and relief for both trustees and sponsoring employers.

This move reinforces the integrity of the UK's pension framework. By ensuring that historical benefit changes are validated appropriately, we can maintain trust in the system and focus on delivering secure retirements for all members.  Hopefully, this legislation will be implemented very soon."

Government publishes further details on plans for pension reforms

In May 2025, the Government published three papers outlining its planned pension reforms.  The papers focus on (i) options for Defined Benefit (DB) schemes, (ii) unlocking the UK pensions market for growth, and (iii) pensions investment review.  They signal a strategic shift towards consolidation, efficiency, and domestic investment.

(i) Options for DB schemes

The Government is moving forward with its plans to allow trustees to amend scheme rules to extract surplus funds, provided “stringent funding safeguards” are in place.  This includes revoking Section 251 of the Pensions Act 2004, which previously required trustees to pass a resolution by April 2016 to retain certain surplus powers.

The proposals for a 100% Pension Protection Fund underpin in return for payment of a “super levy” have been dropped, due to concerns over cost and moral hazard.  However, the Government will continue to consider the options for a public consolidator.

There are no plans to change the tax payable on any surplus extracted (currently 25%) at present, though the Government is keeping “the wider tax regime for surplus extraction” under review.

(ii) Unlocking the UK pensions market for growth

The Government has introduced a “Megafund” requirement, whereby Defined Contribution (DC) providers and master trusts must have at least £25 billion in assets under management in a single large default arrangement by 2030.  Schemes that are exempt from the Megafund requirements include single employer trusts and Collective Defined Contribution schemes.

(iii) Investment reform

The upcoming Pension Schemes Bill will include a reserve power that will enable the Government, if necessary, to set “quantitative baseline targets for pension schemes to invest in a broader range of private assets, including in the UK”.  The Government doesn’t anticipate having to exercise this power, unless the industry does not achieve the desired changes on its own.

The Pensions Regulator and the Finance Conduct Authority will launch a joint data collection initiative later this year, focusing on asset allocation in workplace DC schemes with the first report expected to be available in early 2026.

Bristol 10K to support Baby Bank

Big congratulations to our superstar colleagues Iwona and Judd who completed the Bristol 10K on Sunday! They did us all very proud, and we've raised an incredible £215 so far from friends and family supporting them. Well done!

TPR Annual Funding Statement 2025

The Pensions Regulator (TPR) publishes a statement each year on how it expects trustees to approach current valuations.  The latest statement was published in April 2025 and can be found at the link below.  This statement is particularly relevant to schemes with valuation dates between 22 September 2024 and 21 September 2025.  The key points are summarised below.

https://www.thepensionsregulator.gov.uk/en/document-library/statements

Key messages:

• Most schemes continue to see positive funding levels.  TPR’s estimates as at 31 December 2024 indicate that around 85% of schemes are in surplus on a technical provisions basis, 76% on a low dependency basis (derived by TPR), and 54% on a buyout basis.

• TPR expects most schemes to shift their focus from deficit recovery to endgame planning.  However, trustees should continue to understand any risks to the scheme’s investment strategy and employer covenant, for example due to increasing trade and geopolitical uncertainty.

• TPR estimates that around 80% of schemes should be able to meet the Fast Track parameters under the new funding code.

Undergoing a valuation under the new funding code:

• TPR has answered some common queries in the appendices to the statement and in its funding code webinar.

• Trustees must work collaboratively with their advisers throughout the process and engage early with advisers and employers.

• There is no legal obligation to meet the long-term objective within a set timeframe, though schemes must reach low dependency by their relevant date.

• For schemes supported by an employer with high affordability, TPR expects any funding deficit to be addressed quickly, with any additional employer cash flows being used to support risk taking within the scheme’s journey plan.

• For schemes supported by an employer with lower affordability, trustees should assess whether taking unsupported investment risk is appropriate, or whether alternative options should be considered.

General considerations:

• Employer covenant remains a key element to consider when assessing the level of supportable risk within a scheme’s journey plan, in particular for schemes which are poorly funded, large in comparison to the size of the employer, or taking significant levels of risk.

• Trustees should recognise the macroeconomic uncertainty that continues to impact scheme investments and employer covenant, including increased trade and geopolitical uncertainty.

• Trustees should ensure that their short term liquidity and cash flow requirements can be met, while also ensuring that their longer term investment strategy remains appropriate.

• Robust and effective operational processes should be in place to enhance the resilience of the scheme to market shocks and reduce risks to acceptable levels.

• Trustees of schemes using Liability Driven Investment (LDI) should carry out periodic stress tests to evaluate the resilience of their LDI strategy.

Funding position:

• As previously, TPR has grouped schemes into three broad categories based on their funding level, and has adapted these groups for the new funding code.

• Funding levels at or above low dependency:

  o    Focus should be on endgame planning.

  o    If schemes decide to run on, they should weigh the benefits against ongoing risks and ensure suitable monitoring and management strategies are in place.

  o    Trustees should continue to monitor the employer covenant to ensure it can still support the risks being taken.

• Funding levels above technical provisions but below low dependency:

o    Focus should be on ensuring the scheme stays on track to achieving low dependency by the relevant date.

• Funding level below technical provisions:

o    Focus should be on eliminating the deficit.  This should be done as quickly as the employer can reasonably afford.

o    Technical provisions should be consistent with the scheme’s journey plan to reach low dependency by the relevant date.

o    The level of risk taken should reflect both the employer covenant and the maturity of the scheme.

UK Government unveils reforms to consolidate small pension pots and boost retirement savings

Today, the UK government unveiled reforms aimed at making it easier for workers to manage their pensions by consolidating small pension pots. Currently, there are 13 million pension pots worth £1,000 or less, with this number growing by around one million annually. These small pots create unnecessary administrative costs and can reduce returns for savers due to flat fees.

The new initiative will bring these small pots together into a single pension scheme, certified to deliver good value for savers. Workers will have the option to opt out, and the plan is expected to increase the pension savings of the average worker by around £1,000. The move is also expected to save businesses £225 million annually in administrative costs.

The reforms are part of the Pension Schemes Bill, which is set to encourage more investment in the pensions industry and help boost retirement savings. The new system aims to reduce complexity and costs for savers while contributing to the government’s broader growth mission.

Experts, including representatives from the Pensions and Lifetime Savings Association (PLSA) and Which?, have expressed support for the changes, which aim to simplify pension saving and ensure people’s pensions grow more effectively.

Gaucho Rasmussen, Executive Director of Regulatory Compliance at The Pensions Regulator (tPR), also welcomed the government’s plans for a small pension pot consolidator.

HPW’s Investment Market Review

Please find here HPW’s Investment Market Review of the first quarter of 2025.

For more information please contact Investment@hughespricewalker.co.uk

Kind regards

HPW investment

Virgin Media case: options for trustees

In July 2024, the Court of Appeal upheld a 2023 High Court ruling that could have significant implications for certain defined benefit pension schemes.

The case involved the NTL Pension Scheme trustees and Virgin Media Ltd, focusing on section 37 of the Pension Schemes Act 1993, which requires actuaries to certify any amendments to benefits in contracted-out schemes. Schemes that were contracted out of the additional state pension must ensure benefits are at least equivalent to a minimum standard, as specified in a hypothetical “reference scheme”. Any changes to these benefits must be certified by the scheme actuary to confirm compliance with this standard.

The court ruled that amendments affecting members’ section 9(2B) rights would be invalid unless the actuary had provided written confirmation at the time the changes were made. This ruling could impact schemes contracted out from April 1997 to April 2016, when contracting out ended.

The ruling has caused uncertainty in the pensions sector, especially regarding its impact on reporting by schemes and employers. A potential further legal case in 2025 may clarify some issues, such as whether entire amendments are invalid if no actuarial certification is found, or just the parts affecting section 9(2B) rights. Industry bodies are urging the Department for Work and Pensions (DWP) to introduce regulations to validate amendments that are void due to missing actuarial confirmation.

Although the ruling does not alter existing regulations, it clarifies the consequences of failing to demonstrate that actuarial certification was obtained when amendments were made. Trustees and sponsors may assume the scheme is paying the correct benefits if they believe the amendments were valid. However, any uncertainty could lead to incorrect liability valuations, potentially resulting in either an increase or reduction of the defined benefit obligation.

We have outlined below the potential options for trustees to consider at this stage, along with the associated risks.

•Wait for further developments: Trustees may choose to adopt a "wait for further developments" approach due to the uncertainty surrounding the current situation. The complexity and potential cost of conducting a full investigation into the impact of scheme amendments on liabilities, particularly when historical records are not easily accessible, may outweigh the perceived benefits. Trustees might also feel confident that the amendments and necessary confirmations were properly executed, meaning the likelihood of discovering additional liabilities is low. Furthermore, with the possibility of future regulatory changes or additional rulings that could render current investigations unnecessary, trustees may conclude that it is more prudent to wait for clearer guidance or developments before committing resources to the matter.

•Find out more: Trustees may opt for a "find out more" approach to gather additional information and better understand the potential impact of the situation. This approach allows them to stay informed without committing to a full-scale investigation. By reviewing the amendments made to the scheme, understanding the procedures followed, and identifying whether the necessary confirmations were obtained, trustees can assess the potential risks and implications. This proactive step helps trustees stay prepared for any future developments or regulatory changes, ensuring they are in a position to respond appropriately if further action becomes necessary. It also allows them to make more informed decisions while minimising unnecessary costs.

•Comprehensive review: Trustees may choose to take a comprehensive review approach if they feel the need to fully assess the impact of past amendments on the scheme’s liabilities. This approach involves a detailed examination of all relevant changes to ensure compliance with regulations and to identify any potential risks or gaps in the scheme’s governance. By conducting a thorough review, trustees can ensure that the scheme is on solid footing and avoid any future liabilities that might arise from overlooked issues. This proactive strategy may also provide greater clarity and confidence in the scheme’s overall structure, especially if there are concerns about the accuracy or validity of previous amendments.

Next steps

HPW can support trustees and employers throughout this process by offering expert guidance and comprehensive services tailored to their needs.

Whether trustees or employers are considering a "find out more" or "comprehensive review" approach, we can assist in assessing the potential impact on liabilities if there is any doubt as to the validity of any scheme amendments. Trustees may also wish to ask their legal advisers to undertake a review of scheme documentation to establish whether any deeds of amendment do not have the necessary certification.

Additionally, we can help identify any gaps in governance and offer practical solutions to address them, providing trustees or employers with the confidence to make informed decisions while mitigating any potential risks.

Government proposal on the use of surpluses

Today, the Government has published its proposal regarding the use of surpluses in defined benefit (DB) pension schemes. This proposal aims to unlock billions of pounds in funds, which could be directed towards stimulating economic growth and improving outcomes for pension savers. The proposed changes are designed to provide businesses with greater flexibility in how they manage surplus funds from DB pension schemes. This flexibility could allow businesses to reinvest these surpluses into areas such as boosting economic productivity, increasing wages or enhancing benefits for pension scheme members.

Prime Minister Keir Starmer and Chancellor Rachel Reeves are leading this proposal, which are part of a broader strategy to foster a more growth-oriented environment for businesses across the UK. The hope is that, by unlocking these surpluses, businesses will have more capital available for investment, which could, in turn, drive growth in both local and national projects. The Government sees this as a way to benefit both the economy at large and the financial security of pension scheme members.

The Pensions Regulator (tPR), has expressed support for the proposal, highlighting the potential for increased investment in UK assets and improved outcomes for pension scheme members. By freeing up surplus funds, the Government believes it can encourage investment in infrastructure, businesses and other key sectors, which would have a positive long-term impact on the economy.

As the Government moves forward with these proposals, it will be important to monitor how they are received by all stakeholders and whether they achieve the desired outcomes of stimulating economic growth while ensuring the continued security of pension scheme members.

Steps to stay scam safe

The Pension Scams Action Group has published a new checklist to help individuals protect themselves from pension scams.

These steps serve as a crucial guide for anyone who feels uncertain about their pension dealings.

1. Is the offer unexpected? If you're approached out of the blue with a pension offer, it’s a red flag. Scammers often create urgency to get you to act quickly without considering the risks.

2. Have you checked who you’re dealing with? Before proceeding, verify the credentials of anyone offering financial advice. The FCA’s Financial Services Register allows you to confirm if the individual or company is authorised to provide advice.

3. Stop and think – are you being rushed or pressured? Scammers often try to rush you into making decisions under pressure. Take a step back, and never let anyone pressure you into making quick choices regarding your pension.

4. Should you seek impartial advice? It’s always wise to seek unbiased advice from trusted sources. MoneyHelper, Pension Wise and Stop! Think Fraud offer valuable resources to guide you through the decision-making process.

By following these steps, you can safeguard your pension and make informed choices. Stay cautious and verify details before taking any action.

HPW’s Investment Market Review

Please find here HPW’s Investment Market Review of the fourth quarter of 2024.

For more information please contact Investment@hughespricewalker.co.uk

Kind regards

HPW investment

Jean Slater falls victim to a secondary scam: a warning for all

In a gripping new episode of EastEnders, Jean Slater becomes entangled in a secondary scam, shedding light on an underreported but increasingly dangerous form of financial fraud. Secondary scams are perpetrated by fake recovery companies that target victims of an initial scam, promising to help recover lost funds, only to defraud them further.

While primary scams often involve schemes that lure people into risky or fake investments, secondary scams exploit the desperation of victims who have already been deceived. These scams can be even more devastating, as they prey on trust and amplify the financial and emotional toll.

To combat such dangers, The Pension Scams Action Group has created a helpful resource: the “Steps to stay scam safe” checklist. This leaflet provides practical advice to help you identify and avoid pension-related scams. Key tips include verifying the credentials of anyone who contacts you, being wary of unsolicited offers and never feeling pressured into making quick decisions about your pension.

For more information, access the checklist here.

The EastEnders storyline serves as a powerful reminder to remain vigilant.