Pensions UK conference: industry urged to prepare for sweeping reforms by 2030

The theme of this year’s Pensions UK Investment Conference 2026 in Edinburgh was clear: pension funds must prepare for a significantly changed policy and investment landscape by 2030.

Sessions focused on major elements of the forthcoming Pension Schemes Bill, including the Value for Money (VfM) framework, consolidation in the Local Government Pension Scheme (LGPS), guidance on fiduciary duty and proposals around scale tests.

The conference opened with a panel featuring Joe McDonnell, chief investment officer at Border to Coast Pensions Partnership; Dan Mikulskis, chief investment officer at People’s Partnership; and Mads Gosvig, chief officer for pensions investment management at Railpen.

The trio discussed how their organisations are navigating periods of market volatility, stressing the importance of maintaining a long-term investment focus and having strong support from trustees. They noted that volatility is a constant feature of markets and that robust investment processes and systems are essential.

A subsequent session on the UK’s new VfM regime drew strong attendance and included representatives from The Pensions Regulator (TPR), the Financial Conduct Authority (FCA) and People’s Partnership.

The panel discussed the objectives and practical challenges of the framework, emphasising the need to deliver sustainable retirement incomes supported by diversified investment portfolios.

A poll conducted during the session suggested the audience expected the framework to improve retirement outcomes only “slightly”. However, Nike Trost noted that even marginal improvements could have a meaningful effect on savers.

She said a 1% improvement in outcomes could increase a £10,000 pension pot by 46% over five years.

While parts of the industry have raised concerns about the commercial implications of the proposed rating system following the close of the consultation last week, Trost told delegates the regulator expects to see “a lot of green ratings”. The system will classify schemes using red, amber, dark green and light green ratings.

Joey Patel, director of policy and pensions reform at TPR, added that an amber rating would not require a scheme to exit the market or transfer members, as some had feared.

She said: “Within the framework, there is a lot of room for improvement. We don’t want knee-jerk reactions, but it does give trustees the opportunity to sit down with their advisers and reassess their investment strategy and see if it is the right one going forward.”

On the conference’s second day, delegates heard from pensions minister Torsten Bell, who addressed current geopolitical risks and stressed the importance of domestic investment, diversification and improving returns for savers.

Bell said the government intends to use the reserve power clause in the Pension Schemes Bill only as a backstop to ensure the goals of the Mansion House Accord are met. He also said the government would clarify its position during the final stages of the Bill.

However, some attendees questioned why amendments might only be introduced at a late stage, particularly as Bell confirmed the government does not plan to amend the Bill’s sunset clause, which extends beyond the current parliament. He argued that the best way to prevent the power being misused was by ensuring Labour wins the next election.

Bell also confirmed that a retirement-only collective defined contribution (CDC) scheme will be introduced this year following the government’s consultation last October.

He said: “We will bring forward the legislation to underpin retirement only CDC this year.”

On the LGPS, Bell said the government would take a pragmatic approach to the pooling deadline at the end of March. While acknowledging that some pools may complete the process later than others, he said all were “on the right track” and that he remained “very confident” pooling would be achieved.

The conference also marked the final event chaired by Emma Douglas, who has led the organisation since 2021, when it was still known as the Pensions and Lifetime Savings Association (PLSA).