IPE UK Briefing: Pensions UK debates adequacy and reform

The UK pensions industry gathered in Liverpool in October for the annual Pensions UK conference, where pension adequacy and Local Government Pension Scheme (LGPS) reform dominated discussions.

In his opening keynote, Pensions UK chair Jamie Fiveash urged the industry to move from reacting to reform to shaping it, setting out priorities for the sector.

Pensions commissioner Jeannie Drake told delegates that pension adequacy was a systemic challenge requiring collective action. She said it could not be addressed by the pensions industry, the state, employers or employees alone. All parties needed to “manage implementation of reforms” and “allow for time to adjust”.

The industry was also urged to prepare for increased demand ahead of the launch of the Money and Pensions Service’s (MaPS) pensions dashboard. Chief executive Oliver Morley updated delegates on progress, highlighting that 96% of pension records would be connected to the dashboard by the end of October.

A session on the LGPS highlighted the need for clear accountability as funds and investment pools collaborate more closely under ongoing reforms. London CIV chief commercial officer Adrian Mayers said funds should determine what they wanted to achieve and why, including their investment strategy and asset allocation, while pools should decide how those objectives were implemented.

In his closing keynote, pensions minister Torsten Bell played down concerns that the UK’s value-for-money (VfM) framework could encourage defined contribution (DC) pension funds to “herd” into similar investment strategies. He argued that narrowing the current dispersion in returns would improve outcomes for savers.

DC schemes explore private market opportunities

Outside the conference, UK pension schemes continued to explore private market investment opportunities.

M&G launched a diversified private credit feeder long-term asset fund (LTAF) aimed at widening access to its private credit capabilities, with a particular focus on DC pension schemes. The fund launched with £74m, including capital from M&G’s £138bn With-Profits Fund, and is aligned with the ambitions of the Mansion House Accord.

Data compiled by the Association of British Insurers (ABI) and Pensions UK showed that signatories to the Mansion House Accord had invested £11.1bn (€13.2bn) in UK private markets as at 31 December 2025. The signatories held £22.1bn in global private market investments across DC growth-phase assets, representing 6.6% of those assets. UK investments accounted for 3.3%.

Meanwhile, Scottish Widows set up a UK venture growth portfolio within its CG Scottish Widows Growth LTAF. The mandate began with investments in areas of strategic importance to the UK, including quantum computing, advanced battery technology and AI-enabled healthcare.

Research from People’s Pension and Invesco found that larger UK DC pension schemes could invest between £30bn and £90bn in UK private markets over time as schemes broaden their asset allocations beyond public markets.

DB run-on and risk transfer

Defined benefit (DB) schemes are also exploring new approaches to managing their assets and liabilities.

M&G launched a run-on solution for DB pension schemes, securing a £400m deal. The solution is designed for well-funded schemes seeking to generate additional value by reducing the assets required to meet liquidity and collateral requirements, while retaining flexibility over their endgame planning.

Run-on solutions gained further momentum this month after TPT Retirement Solutions’ run-on superfund successfully completed The Pensions Regulator’s (TPR) assessment process, allowing it to progress towards its first transaction. TPT has previously said it aims to launch the superfund with its first transaction in early 2027.

Clara-Pensions, meanwhile, completed an industry-first transaction involving the transfer of six schemes from Marelli UK in a single deal worth £250m. The transaction covers 3,300 members, with individual scheme assets ranging from £1m to £125m.

Legal & General (L&G) also completed two pension risk-transfer transactions this month: a £240m buy-in with the UK-based United Glass Pension Plan and a £1.7bn buy-in with the UBS Group pension plan. The latter was the largest UK pension risk-transfer deal announced so far this year.

Items to note:

• The IPE Conference & Awards 2026 is taking place on 2 December at the Royal College of Physicians & Natural History Museum in London.

Pamela Kokoszka

UK Correspondent