Pensions Weekly Update – 5 March 2025

Here is our weekly summary of key legal and regulatory developments relevant to occupational pension schemes that you might have missed, with links for further information.

• Is there hope of government intervention to resolve the post-Virgin media case section 37 conundrum for schemes that were contracted out on the reference scheme test basis? In answer to a parliamentary question, Pensions Minister Torsten Bell said, “Where schemes do not have a way to demonstrate that historic benefit changes met the reference scheme test, we recognise that this could lead to uncertainty and additional costs. No final decisions have been made, but we are actively considering our next steps and will provide an update in due course”.
• The Pensions Regulator (TPR) has issued a five year data strategy plan, which it describes as a “plan to benefit schemes, savers and the economy through improved data”. In addition to urging pension schemes to improve their own data, TPR plans to reduce burdens on schemes by modernising how it collects and shares data. The strategy also calls on schemes to safely adopt new technologies, including artificial intelligence (AI). TPR will establish a working group to help the industry improve its use of digital tools, data and technology. 
• At the autumn budget on 30 October 2024, the government announced its intention to introduce the reserved investor fund (RIF). The RIF will be a new type of UK-based investment fund vehicle legally structured as an unauthorised co-ownership alternative investment fund. The aim is to facilitate investment in illiquid assets by institutional investors such as pension funds. Legislation has now been passed to introduce the RIF, and it will come into force on 19 March 2025. A second set of regulations has also been passed, to ensure that the RIF is commercially viable. It will do this by extending provision about contracts and the rights and liabilities of investors in authorised co-ownership contractual schemes to investors in RIFs. 
• HM Revenue and Customs has published newsletter 167. This includes information on transfers to qualifying recognised overseas pension schemes, lump sum reporting, relief at source and a reminder that pension scheme returns will be issued via the managing pension schemes service. Trustees who have not yet migrated their schemes over to this new service should take action now.
• Directors and persons with significant control of UK registered companies will be required to verify their identity from autumn 2025 onwards. This will also impact directors of corporate trustees. For directors of existing companies, the identity verification process will be done via the annual confirmation statement. It will be possible to undertake earlier voluntary identification from the end of this month. Our two part blog series contains more information. 
• Being economical with the truth when it comes to CV writing and social media posts has been in the news recently. David Whincup, a partner in our Labour & Employment team, considers a recent tribunal case and asks "how honest is honest enough in your job application?"  
• Our Spring Hot Topics in Pensions highlights 10 diverse topics for your trustee or corporate agenda. It is a quick read, but it covers a lot of ground.

If you would like specific advice on any of these issues or anything else, please contact a member of our Pensions team.