Explore answers to commonly asked questions about pensions.
Curious? Your questions answered
Stewardship is defined in the UK Stewardship Code 2026 as “the responsible allocation, management and oversight of capital to create long-term sustainable value for clients and beneficiaries .”
This is the UK’s main measure of inflation which is calculated in line with international statistical standards. It is used for a wide range of purposes. These include its use as the measure to assess how the Bank of England is performing against its Government-stipulated 2% pa inflation target, as well as to increase state, public sector and statutory minimum pensions, along with some private sector pensions.
The new DB funding regime requires schemes to set a clear long‑term funding objective. An actuarial valuation is a good time for trustees and sponsors to consider their long-term objectives and overall strategy. For most schemes, given current financial market conditions, the new regime is unlikely to lead to a material increase in contributions.
The outlook for schemes seeking to insure in 2026 is positive – well-prepared and well-advised schemes will be able to achieve attractive pricing and benefit from innovation in key areas such as member experience.
Operating between mid-2019 and January 2021, PCRIG provided nonmandatory industry-wide guidance for UK pension scheme trustees on climate-related risks and aligning their scheme with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The Statement of Strategy is a key document submitted to TPR explaining the outcome of a scheme’s actuarial valuation. It includes narrative disclosures and a number of key trustee judgements, not just valuation numbers.
A holistic approach to measuring a company’s performance on environmental, social, and economic issues. The triple bottom line approach to management focuses not just on the economic value (profit) they add, but also on the environmental and societal value they add or detract.
This consists of a set of principles and provisions whose purpose is to facilitate effective management of listed companies with the aim of delivering long-term corporate success.
The FRC's Stewardship Code sets high stewardship standards for asset owners and managers, and for service providers that support them, through a set of “apply and explain” principles accompanied by reporting expectations. It is complementary to the (UK) Corporate Governance Code.
Voting analysis helps asset owners understand how their managers vote on important resolutions and where approaches differ across managers. It can identify significant holdings, support more focused oversight and make it easier to challenge managers where voting appears inconsistent with client expectations or stewardship priorities.
A good pensions administrator makes your pensions scheme members’ lives easier – when they come to take their benefits, have to report a death, or have a question they want answering. It will have robust and intuitive systems, staff that are knowledgeable and empathetic, and be at the forefront of legislative and technological developments in the pensions space.
The UK regulatory framework offers robust safeguards, including:
Capital requirements: Insurers must hold sufficient reserves to meet liabilities under stress scenarios.
Close supervision: The PRA closely monitors insurers, with larger insurers receiving tailored supervision based on their risk profile and activities.
Governance standards: Insurers are required to maintain robust governance structures and appoint qualified individuals to oversee critical functions.
These protections, while strong, are not intended to create a zero-failure regime. Trustees should still undertake due diligence to understand the specific risks and resilience of their chosen insurer.
