During a debate in parliament on the Pension Schemes Bill at the beginning of December, pensions minister Torsten Bell said the government would “develop statutory guidance for the trust-based private pension sector” on a wider interpretation of fiduciary duty.
This would take into account an amendment tabled by Labour MP Liam Byrne, which proposed a new clause for the Bill, allowing trustees to include a range of factors when making investment decisions, such as system-level considerations, members’ views, and the reasonably foreseeable impacts of assets or organisations in which the pension scheme invests.
These are not expected to make it into the primary legislation, however the minister suggested the government would consult on the proposals and share the government’s plans in “due course”. Byrne explained that his amendment would provide clarity for pension fund trustees.
On 15 December, the government launched a consultation aiming to improve standards of pension scheme trusteeship, governance and administration. This followed a statement from the Department for Work & Pensions (DWP) saying trustees have a “pivotal” role in the pensions system and are responsible for ensuring the financial security and retirement outcomes for millions of pension savers.
With the Pension Schemes Bill expected to transform the UK pensions landscape, the DWP said it is important that, as the system changes, trusteeship, governance and levels of regulatory oversight evolve and change too.
It claimed that with a varied array of defined benefit (DB), defined contribution (DC), DB superfunds and collective defined contribution (CDC) pension funds operating, the issues facing trustees vary significantly depending on the size and type of scheme.
It added that different segments of the market may need different solutions and, therefore, the consultation seeks to explore what the upcoming changes mean for trustees in different areas of the pension system and how trusteeship and governance can evolve to deliver the best outcome for savers.
Apart from regulation, Aegon UK has extended its private market approach into its second-largest workplace default fund, the £12bn Aegon LifePath.
As part of its roadmap to align the strategies across the two largest workplace default funds – the Universal Balanced Collection (UBC) and Aegon LifePath – the provider confirmed that from Summer 2026, Aegon LifePath will invest across a broader range of asset classes, including diversified global private markets, protected equities and multi-asset credit.
Separately, WTW and Smart have both added substantial assets under management to their respective portfolios.
WTW announced it was acquiring UK master trust Cushon from NatWest Group, adding almost £4bn in AUM and 730,000 members to WTW’s portfolio.
Smart has, meanwhile, completed a bulk transfer of assets and members from the Options Workplace Pension Trust into the Smart Pension Master Trust, bringing in an additional £650m in AUM, marking another step in the firm’s growth as it targets £10bn in AUM in the first half of 2026.
Elsewhere, Lloyds Banking Group Pensions Trustees has entered three new longevity insurance and reinsurance arrangements to further protect the Lloyds Banking Group pension schemes from the cost of unexpected increases in the life expectancy of its members, totalling £4.8bn.
The new longevity insurance and reinsurance arrangements cover £3.1bn of pensioner liabilities in the Lloyds Bank Pension Scheme No.1; £0.7bn in the Lloyds Bank Pension Scheme No.2; and £1bn in the HBOS Final Salary Pension Scheme.
Pamela Kokoszka
UK Correspondent
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