We can all breathe a sigh of relief that the Pension Schemes Bill is now an Act. But, as Pensions Expert editor Nick Reeve writes, we must not forget the risks lurking within the legislation.
Hallelujah! It’s Friday, a bank holiday weekend lies ahead, and we have a Pension Schemes Act to celebrate. After an extended ping-pong rally between the Commons and the Lords, there was agreement on Tuesday and on Wednesday the legislation was signed off by King Charles III to become law.
This gave me and my esteemed colleague Thomas Parker of LAPF Investments ample time to record a special episode of the Always A Pensions Angle podcast exploring the bill’s transition to an Act of Parliament – look out for that in your podcast feeds on Monday.
(Incidentally, how does the king sign off on bills when he’s abroad? Can you grant Royal Assent via Zoom?)
During the parliamentary back and forth on the Pension Schemes Bill, Liberal Democrat spokesperson Steve Darling likened the controversial mandation power to a Trojan horse lurking in the legislation.
“I suggest that [Torsten Bell] has been studying his Greek history and developed a Trojan horse, which he has sneaked into the bill… While the minister may have cut off a couple of the horse’s legs, it remains a Trojan horse before us.”
Steve Darling, speaking in the House of Commons on 22 April
As an aside, it is quite amusing to think of Torsten Bell sat in a wooden construct, waiting to leap out and take control of pension schemes deemed not to be moving quickly enough to meet the goals of the voluntary Mansion House Accord.
As the government tabled more and more concessions, Darling referred to legs being cut off this particular Trojan horse as it attempted to hop over the finish line.
Finally, and to sighs of relief from across the industry, the horse was sufficiently hobbled for the Lords to accept the bill, and we can look forward to the long process of implementation.
We must remember, however, that the Trojan horse is still there.
Sure, the Greeks may have confessed to the people of Troy that there are soldiers inside. The people may have negotiated with the soldiers to put down their weapons and to take off their armour. And to publish a report justifying their reasons for invading before doing so. And there is even the ability to remove the horse from the city altogether after a set period.
The fact remains, however, that there are a bunch of figurative angry Greeks locked in this act somewhere that could still cause problems in the pensions industry’s city of Troy.
For anyone who thinks I’ve taken this analogy too far, you’re correct, but the point is, we must not forget that the threat of mandation remains.
To end on a positive note, though, the Pension Schemes Act 2026 contains so much to be positive about. Implementation challenges remain, but we can now approach the next decade with certainty and confidence.
But if you’re a DC provider, beware of any unexpected deliveries of large equine models…
Nick Reeve is editor of Pensions Expert.
