This guide is primarily aimed at trainees, newly qualified lawyers and other persons who are new to or unfamiliar with pensions law. THIS PRACTICE NOTE APPLIES TO TRUST-BASED OCCUPATIONAL PENSION SCHEMES Why do pension overpayments occur? Pension overpayments from occupational pension schemes generally arise either as a result of: • incorrect calculations of pensions due, or • incorrect information having been provided to the pension scheme, which is then used to form the factual basis upon which the pension calculations are subsequently carried out However, regardless of the cause of the error, the overpayment of benefits can cause considerable difficulties and distress for the trustees of the relevant pension scheme, its sponsoring employer and, naturally, the members concerned, each of whom will have their own views on the matter. What is the role of the trustees? Members often assume that trustees have a choice over whether or not they recover or stop an overpayment, whereas in reality the flexibility not to pursue an overpayment is fairly limited. Subject to the successful application

Types of death benefits payable There are two types of scheme benefits payable on a member’s death: • pension death benefits, and • lump sum death benefits Until 5 April 2015, under the pension death benefit rules of the Finance Act 2004 (FA 2004), s 167, a pension death benefit could only be paid to a dependant of a member if it was to be an authorised payment. The term ‘dependant’ is defined in FA 2004 Sch 28 Pt 2 para 15. From 6 April 2015, a pension death benefit may be paid not only to a dependant of a deceased member but also to a nominee or successor and still qualify as an authorised payment. The term 'nominee' is defined in FA 2004 Sch 28 Pt 2 para 27A while the term 'successor' is defined in FA 2004 Sch 28 Pt 2 para 27F. More specifically, the following pension death benefits may be payable: • a dependant’s scheme pension—this is payable from a defined benefits arrangement, a money

Pensions analysis: The Pensions Investment Review was launched in July 2024 and issued its Phase One Final Report in May 2025. It is supported by the responses to two consultations, which were launched alongside the Interim Report in November 2024: ‘Unlocking the UK pensions market for growth’ and ‘LGPS: Fit for the future’. Written by John Morrison, senior associate in the Pensions team at CMS.

Law360: Too many retirement savings plans attain only minimum compliance with environmental, social and governance (ESG) standards, The Pensions Regulator (TPR) has said, and urged them to improve their approach.

Law360, London: Retirement savings plans in the UK face increased regulatory scrutiny to ensure that Britain has the best possible standards on safeguarding the personal data of clients, TPR has said.

Law360: Pensioners need 60% more retirement savings to meet basic costs compared to just three years ago, according to a think tank's research published on 4 September 2024.

Law360: Pension savers withdrew £70.9m from their pension pots in the financial year that ended in March 2025, data published by the Financial Conduct Authority (FCA) on 16 September 2025 shows, amid suggested concern over government plans to amend tax rules linked to retirement pots.

Restructuring & Insolvency analysis: This case involved an application for relief akin to that upheld by the Court of Appeal in Bacci v Green, where it was held that the court had the power under section 37(1) of the Senior Courts Act 1981 (SCA 1981) to appoint a receiver over (or grant an injunction in respect of) the totality of a defendant’s right to give instructions to their pension scheme’s trustees. The application was adjourned, and the judge gave useful guidance on the information which a court is likely to require before making a decision on whether or not to grant such relief. There was also discussion of the test for determining whether a (judgment) debt had been incurred in respect of fraud or fraudulent breach of trust pursuant to section 281(3) of the Insolvency Act 1986 (IA 1986). The time at which an application for permission under IA 1986, s 285(3) (to bring proceedings against a debtor during their bankruptcy) could be made was also considered. Written by William Birch, barrister at 4 New Square Chambers.

This is a lump sum which may be paid from a registered pension scheme equal to the capital value of the pension at benefit crystallisation, less any instalments already paid.

A lump sum benefit paid following the death of a scheme member of a registered pension scheme, who died before age 75 and was in receipt of a scheme pension under a defined benefits arrangement and which does not exceed the limits imposed through paragraph 14 of Schedule 29 to the Finance Act 2004.

Pensions analysis: The Deputy Pensions Ombudsman (DPO) has rejected a complaint about a pension scheme’s failure to warn about the suitability of a member’s investments. Martin Scott of gunnercooke LLP looks at the decision.

Law360: The largest defined contribution pension providers are aiming to allocate up to 40% of their illiquid portfolios to UK assets, a consultancy said on 10 February 2025, after years of pressure from the government to encourage more domestic investment in long-term projects.