Key developments in the pensions sector were highlighted this week at the Pensions and Lifetime Savings Association (PLSA) Investment Conference in Edinburgh, where industry leaders and government officials shared updates on policy, regulation, and market trends.

Pension Minister, Torsten Bell, reaffirmed the government’s commitment to the March 2026 deadline for Local Government Pension Schemes (LGPS) pooling work, confirming plans to meet with each of the eight funds in the coming weeks.

He also announced his intention to lay the Pensions Bill in parliament ahead of the summer recess, with the final report on the Pension Investment Review to be finalised in “the coming weeks”.

Despite renewed calls from Nucleus for an independent long-term savings commission, Bell appeared to rule out the possibility of establishing one as a way of building consensus.

Meanwhile, HM Treasury head of pensions investment review, Joanne Gibson, announced that the government will soon share a roadmap to outline how upcoming pension reforms and policy changes will fit together.

In other policy news, the government confirmed that planned amendments to the Teachers’ Pension Scheme will proceed, with regulations to be laid in parliament this month, changes coming into force on 1 April 2025.

In terms of industry updates, the PLSA announced plans to update the vote reporting template, incorporating insights from industry groups.

This was then launched at the conference in a panel session featuring the Financial Conduct Authority (FCA) and Vote Reporting Group, where FCA director of sustainable finance, Sacha Sadan, urged savers to adopt the updated template quickly.

Annuities remained a hot topic, with Hargreaves Lansdown research showing annuity incomes have surged in value to a 16-year high.

Standard Life’s Annuity Rates Tracker also revealed an 8 per cent increase in annuity rates for a healthy 65-year-old over the past year, suggesting the attractiveness of annuities in today’s market.

Defined benefit (DB) schemes also continued to navigate a shifting landscape.

The Pension Protection Fund’s 7800 Index indicated that DB pension surplus fell by over £6bn in February 2025.

However, research from LCP suggested that endgame strategy and planning remain a top priority for DB pension schemes, given continued strong funding levels.

Meanwhile, a poll at the PLSA Investment Conference confirmed that buyout remains the most popular endgame strategy for DB schemes.

Hymans Robertson has further highlighted that legislative changes could help ‘unlock’ DB pension surpluses, potentially generating £400bn of capital over the next decade.

In LGPS news, the latest National LGPS Procurement Framework for Transition Management Services has been launched this week.

Meanwhile, a survey of pension professionals found that 67 per cent expect there to be fewer than 40 LGPS funds in England and Wales by 2035, although experts have called for further clarity on the consolidation’s objectives.

On pension engagement, independent pensions consultant, Richard Smith, suggested that dashboards could be “the solution” to tackling disengagement with pensions.

However, Age UK head of policy, Christopher Brooks, warned that while targeted support could help the majority of savers make better decisions, it may prove “detrimental” to a minority who require more tailored guidance.

In other news this week, the Pensions Regulator (TPR) secured a £25.5m funding boost for the MGN Pension Scheme, ensuring that it remains on track to be fully funded by January 2028 following intervention from TPR and publisher Reach Plc.

Sustainability was once again a focal point at the PLSA Investment Conference, with British Business Bank chief investment officer, Leandros Kalisperas, raising concerns that current climate risk assessments in pension investments “may not be credible”.

Climate protestors were also present at the conference, urging delegates to update risk assessment methodologies, arguing that many funds still rely on “flawed” climate risk advice.

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