UK pension schemes face growing governance demands as regulatory requirements, administration risks and complex projects place additional pressure on trustees.
Six key themes are influencing trustee priorities and how schemes are managed.
- Increasing Trustee Workloads
Trustee meetings are becoming more demanding, with lengthy papers and inconsistent reporting making it harder to focus on key decisions. Clearer reporting and better-structured meeting papers can help improve decision-making.
- Trustee Succession Planning
Trustee boards must balance retaining experience with introducing new skills. Regular board evaluations, succession planning and training are becoming increasingly important.
- Regulatory Requirements
The Pensions Regulator’s General Code has increased expectations around governance, risk management and internal controls. Trustees must also prepare for Own Risk Assessments (ORAs), with the first assessments due according to scheme-year deadlines following 27 March 2026.
- Pension Administration Risks
Trustees remain legally responsible for administration even when services are outsourced. Oversight of service providers, data quality, cyber security and business continuity are key priorities.
The increasing use of artificial intelligence and automation also creates additional considerations around accuracy and service delivery.
- Complex Projects and Limited Resources
Projects such as GMP equalisation, risk transfers, data cleansing and scheme wind-ups are placing pressure on pension teams. Clear responsibilities, project management and oversight are needed to manage costs and delivery.
- Defined Contribution Scheme Transitions
Changes to the Value for Members framework are expected to increase Master Trust transitions. Data quality is a particular concern, with errors in retirement dates, investment strategies and pension records potentially creating problems during transfers.
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