Pensions Bulletin 2026/09

PPF confirms zero levy for conventional schemes 

The Pension Protection Fund has announced that it will not charge a levy for conventional schemes for 2026/27 (which would otherwise normally be invoiced in autumn 2026). A zero-levy will apply to all schemes with a substantive sponsoring employer, which includes almost all of the 5,000 PPF eligible schemes.

The PPF expects to publish its policy statement and final levy rules for 2026/27 before the end of March. In the meantime, it has confirmed the following points:

• Schemes are required to submit annual Scheme Returns as usual via the Pensions Regulator’s Exchange system, including section 179 valuations and asset backed contribution information where relevant.
• The D&B insolvency risk portal will close on 1 April 2026. The PPF recommends that schemes should download any information they wish to keep before the end of March.
• Schemes no longer need to submit voluntary information, such as deficit reduction contribution certifications, contingent asset certifications and documents, asset backed contribution certificates, and special category employer applications. 
• Exempt Transfer evidence and block transfer certificates are also no longer required. However, transfer information must still be submitted to the Regulator via the scheme return and, where applicable, through the notifiable events process.  

The PPF will still charge a levy for Alternative Covenant Schemes (ACSs), ie those without a substantive sponsoring employer, but expects this to be low in 2026/27. With the regulatory framework for superfunds evolving, and the sector’s potential for significant growth, the PPF plans to review its ACS levy methodology for 2027/28 to ensure it continues to be proportionate to the risks posed.

The separate PPF administration levy, which was normally invoiced by the Pensions Regulator on behalf of the DWP, is also expected to be zero. This follows the insertion of the relevant clauses into the Pension Schemes Bill (see Pensions Bulletin 2025/49).

PASA issues final instalment of its digital administration guidance

The Pensions Administration Standards Association (PASA) has announced the publication of the final digital administration guidance document in its three-part series, following on from its second guidance document published in January 2026 (see Pensions Bulletin 2026/03). 

This latest guidance focuses on how schemes can “translate digital transformation strategy into delivery, embedding saver engagement, change management and iterative improvement into day-to-day operations.”  

The guidance highlights the importance of designing digital administration around saver needs and expectations, supported by scalable infrastructure, integrated systems and a culture of continuous improvement. It also encourages schemes to move away from high-risk “big bang” system replacement and instead adopt incremental, component-based approaches. 

Pension Schemes Newsletter 178 – update ahead of changes to NMPA in 2028

The main topic of interest in HMRC’s Pension Schemes Newsletter 178 is the article on the increase in the normal minimum pension age (NMPA), from age 55 to age 57, that will take effect on 6 April 2028. In particular, HMRC acknowledges that work is still outstanding on transitional regulations that will allow individuals who have started to receive the pension benefits they are entitled to while NMPA is 55 to continue to do so without interruption from April 2028 where they have not reached 57 at that date. These regulations have been anticipated since the Finance Bill legislating for the increase in NMPA was introduced to Parliament in November 2021 (see Pensions Bulletin 2022/08). The Newsletter goes on to remind readers of the rules governing when members may retain a protected pension age following a transfer to another pension scheme, and the circumstances in which this protection may be lost.

The Newsletter also:

• Highlights some enhancements made to the new processes for reporting transfers to qualifying recognised overseas pension schemes (QROPS) through the Managing Pension Schemes service.  
• Provides updated timescales for delivering improved payment processes for schemes that claim relief at source and reminders of existing processes that will continue in the meantime. There is also confirmation that the digitisation of the relief at source service – most recently expected to be operative from April 2028 – will not be operative until April 2029.
• Confirms that the new service enabling scheme administrators to look up members’ protections and enhancements on the Managing Pension Schemes service, originally promised for late 2025, has now been launched.
• Updates readers on the progress through Parliament of the Finance Bill and promises further information – including detailed guidance – to support understanding of the new Inheritance Tax on pensions requirements

FCA gateway now open for targeted support authorisation

The Financial Conduct Authority (FCA) has announced that firms can now apply for permission to provide targeted support. This announcement had been expected and follows on from the Order that was laid before Parliament in January 2026 (see Pensions Bulletin 2026/05).

In the latest announcement the FCA repeats its previous messaging that “targeted support is a once in a generation change that will help millions navigate their financial lives” and “will help fill the gap between generic guidance and individualised advice”. As a result, the FCA wants “authorised firms to be ready to offer the new service as soon as the rules take effect” – ie on 6 April 2026.