An annual return to HMRC to explain why no tax is payable. The income for HMRC would not suffer if it were abandoned; it is mostly designed to catch inappropriate investments.

Provided by HMRC to the scheme administrator; a number needed to help complete the Pension Scheme Return for HMRC.

The full text of the Pension Schemes Act 2026 (PSA 2026) as passed by Parliament was published on legislation.gov.uk on Friday 8 May 2026, the Act having received Royal Assent on Wednesday 29 April 2026.

The Pension Schemes Act 2026 received Royal Assent on 29 April 2026, following several rounds of parliamentary ‘ping-pong’ that concluded on 28 April 2026. The most contentious aspect of the Act was the reserve power on asset allocation, which was the subject of significant disagreement between the House of Commons and the House of Lords and was ultimately scaled back to secure the Lord’s agreement.

On 29 April 2026, the Pension Schemes Bill received Royal Assent after several rounds of parliamentary ping-pong and became the Pension Schemes Act 2026 (PSA). The Pension Schemes Bill’s passage was described as a ‘landmark moment’ by both Torsten Bell and Pensions UK. Broadly, the PSA 2026 aims to reshape private pensions by creating a smaller number of larger, better governed and better value schemes investing in a wider range of productive assets.

This Practice Note provides an overview of the topics covered by the Pension Schemes Act 2026 (PSA 2026), as well as timelines and links to Practice Notes that set out further information. This Practice Note also tracks the various public consultations that are expected to be conducted in relation to the detail of various aspects of PSA 2026 and its secondary implementing legislation. PSA 2026 received Royal Assent on 29 April 2026, after several rounds of parliamentary ping-pong. This was described as a ‘landmark moment’ by both Torsten Bell and Pensions UK. Broadly, PSA 2026 aims to reshape private pensions by creating a smaller number of larger, better governed and better value schemes investing in a wider range of productive assets. PSA 2026 was eventually published on 8 May 2026, nine days after Royal Assent. The measures in the PSA 2026 are being implemented over a period starting with Royal Assent and potentially stretching up to 2032. In July 2026, the government updated the Workplace Pensions Roadmap, which sets out the sequencing and timing of the implementation

Following the House of Lords’ (Lords) further consideration of the Pension Schemes Bill (Bill) on 20 April 2026, the Bill returned to the House of Commons (Commons) on 22 April 2026. The Commons rejected the Lords’ latest positions across the principal areas of contention and instead advanced a series of revised government amendments, all of which were agreed by the House. The direction of travel is clear: the Commons is holding firm on the core architecture of the Bill—particularly the asset allocation reserve power and the scale agenda—while introducing targeted refinements to narrow scope, enhance transparency, and respond to Lords concerns without conceding on principle. The Bill therefore remains in ping pong. The Lords must now decide whether to accept the Commons’ revised amendments or continue to press their objections, most notably on the principle of asset allocation mandating. The Lords are due to consider the Commons amendments on 22 April 2026.

After the House of Commons (Commons) considered the House of Lords (Lords) amendments to the Pension Schemes Bill (Bill) on 15 April 2026, the Lords reviewed the Commons response on 20 April 2026. The Lords accepted some issues but, on several key issues—most notably asset allocation and emendation powers, exemptions from scheme scale requirements, competition provisions, and a proposed review of public service pension schemes—the Lords either insisted on their original amendments or proposed alternative revised clauses. The Bill therefore remains in “ping pong” and has returned to the Commons for further consideration on 22 April 2026.

During the Report Stage and Third Reading of the Pension Schemes Bill, which took place on 3 December 2025, several government amendments were made to the Bill.  Significantly, Torsten Bell also announced that the government intends to bring forward legislation that will allow the government to develop statutory guidance on fiduciary duties for the trust-based private pensions sector. The guidance (which will be consulted on before being finalised) will provide practical support to trustees about how to comply with their fiduciary duties in considering wider factors, including systemic risks (like climate risk) and members’ standards of living. By clarifying their fiduciary duties, the government’s aim is to give trustees added confidence that they can invest in the long-term interests of their members and society. The government will set out more details on its guidance plans ‘in a matter of months’.

On 26 March 2026, the House of Lords held the third reading of the Pension Schemes Bill. Debate at this stage focused less on introducing substantive new changes and more on reflecting on, clarifying and finalising amendments agreed earlier.

Pensions analysis: The Pension Schemes Bill (the Bill) was brought from the House of Commons on 5 December 2025 where it was read a first time in the House of Lords (HoL). On 18 December 2025 the Bill was read a second time and committed to a Grand Committee for detailed scrutiny, with the order of consideration agreed. No amendments were decided at this stage, in line with standard Second Reading procedure. While the outcome of the Second Reading debate in the HoL confirmed broad support for the reforms, particularly on consolidation, the value-for-money measures and retirement defaults, it also highlighted the Bill’s investment mandation power and fiduciary duty implications as key issues for later stages. The Bill has now moved to Grand Committee which will begin a line-by-line examination of its provisions on 12 January 2026.

The Pension Schemes Bill has completed its Public Bill Committee stage in the House of Commons. The Committee, which began its line-by-line scrutiny of the Bill on 2 September 2025, completed its eighth and final sitting on 11 September 2025. The Committee has now reported the Bill back to the House of Commons with amendments and is therefore no longer accepting written evidence. The next step for the Bill is the Report Stage and Third Reading, where further amendments may be proposed and debated. Any further amendments will be selected by the Speaker of the House of Commons. The date for the Report stage and Third Reading is yet to be confirmed.