The Pension Schemes Act 2026 received Royal Assent on 29 April 2026. It is a significant piece of legislation, which sets a statutory framework and agenda for legislative reform of private sector pension schemes over the next five years and beyond.
We take a look below at the main provisions of the Act and how these will affect defined benefit and defined contribution arrangements in the private sector, together with the expected implementation timeline for each area.
Defined benefit schemes
Treatment of surplus
New provisions will allow trustees to amend their scheme rules to permit the payment of surplus to a sponsoring employer while the scheme is ongoing. Separate regulations will set out the funding threshold that will need to be met (which is expected to be the low dependency funding basis) and other payment conditions.
