Joint ventures and reorganisations

Joint ventures

The term 'joint venture' (JV) has no specific legal meaning under UK law. It is essentially a commercial arrangement between two or more parties who agree to pool their resources for the purpose of accomplishing an intended project (or other business activity). The JV vehicle can, for example, take the form of a limited liability company where each party is a shareholder.

The establishment of a JV between two or more sponsoring parties will require the parties to the JV to identify the various pensions issues arising from setting up such a vehicle.

Establishing pension provision for its employees

Pensions issues that arise include:

•
identifying what pension rights existing employees of the JV vehicle already have on the commencement of their employment
•
identifying how the JV vehicle will actually acquire the employees, eg, will they be new hires or will they transfer to the new employer in accordance with the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)?
•
clarifying what pension provision the JV vehicle is legally obliged to provide its employees. These requirements can vary depending on whether the

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

DWP sets out scope of forthcoming fiduciary duty guidance for pension trustees

The Department for Work and Pensions (DWP) has confirmed that forthcoming guidance on trustees’ fiduciary duties will be designed to give clearer and more practical support on how wider factors can be considered within existing legal obligations. Responding to a written parliamentary question, the DWP said the guidance will clarify trustees’ ability to take account of system-level risks, including climate-related risks, and to consider the impacts of investments where these affect members’ long-term outcomes, such as their standard of living. The DWP also indicated that the guidance will explore how trustees may take account of members’ views, provided this is consistent with acting in members’ best interests, and will reaffirm that trustees should consider all financially material matters, where appropriate, in investment decision-making. The DWP emphasised that the objective is to deliver the guidance in partnership with the pensions sector and other interested parties, with work due to commence shortly through an industry roundtable to gather views and technical expertise.Source: Pension Funds, Question for Department for Work and Pensions, UIN 106678, tabled on 19 January 2026.

Targeted support regime: from consultations to confirmation, HMT and FCA set course for April 2026

Pensions analysis: HM Treasury (HMT) and the Financial Conduct Authority (FCA) confirmed the shape of the new targeted support regime—described as the most significant reform to the advice/guidance boundary in more than a decade on 11 December 2025. Following twin consultations conducted during summer 2025, both the government and the FCA have now set out their conclusions and implementation timelines. The new regime is scheduled to go live in April 2026, with FCA regulated firms able to apply for permissions from March 2026. Written by Ana Patwardhan, Hogan Lovells.

FRC publishes provisional guidance on retrospective actuarial confirmation under Pension Schemes Bill

The Financial Reporting Council (FRC) has published provisional guidance to assist pension scheme actuaries who are asked by trustees or managers to consider whether a retrospective actuarial confirmation can be provided under sections 101 or 105 of the Pension Schemes Act 2026 in circumstances where the confirmation required under regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations 1996, SI 1996/1172 cannot be evidenced. It addresses industry-wide concern that some schemes may be unable to demonstrate that the necessary actuarial confirmations were obtained when historic rule amendments were made. To give actuaries sufficient time to prepare, the guidance has been published ahead of the Pension Schemes Bill receiving Royal Assent. The guidance is provisional and may therefore change to reflect any legislative amendments.

TPR encourages DC trustees to have their say on VfM consultation reforms before March deadline

The Pensions Regulator (TPR) has published a blog encouraging trustees of defined contribution (DC) pension schemes to respond to the joint TPR and the Financial Conduct Authority (FCA) consultation paper CP26/1 which outlines how the new value-for-money (VfM) framework could operate by setting out proposals designed to move DC workplace pensions away from narrow cost-based assessments towards a more holistic and comparable evaluation of the value delivered to DC pension savers. TPR is asking trustees to respond by the consultation deadline as trustee input is essential to shaping a VfM framework that they will be responsible for applying in practice. Trustees are expected to drive improvements in value, challenge advisers and providers, and use the framework to identify and address poor outcomes. Feedback is particularly timely because the framework will be implemented for trust-based schemes through forthcoming government legislation, so responses now will help inform both the final design of the framework and TPR’s future regulatory approach. The consultation closes on 8 March 2026.