Here we provide a full round-up of key pensions developments in February, including: 

  • TPO’s third determination on overpayments and the BIC UK Pension Scheme;
  • The Pension Schemes Bill’s completion of the House of Lords Committee stage;
  • The commencement regulations that brought most of the Data (Use and Access) Act 2025 provisions into force on 5 February 2026;
  • TPR’s determination notice vesting scheme assets in the independent trustee; and
  • The PPF’s confirmation that its conventional levy will be zero for the second year running.

TPO’s third determination on overpayments and the BIC UK Pension Scheme

Our in-depth focus this month is on the Pensions Ombudsman’s (TPO) third determination relating to the BIC UK Pension Scheme and overpayments. The first April 2024 determination (Mr E) was used as a lead case and provided a detailed analysis of the defences available to members where they have been overpaid benefits which the trustees wish to recoup by reducing or suspending future pension payments. The second June 2025 determination (Mr and Mrs D) provided useful further guidance on how TPO will approach overpayment recovery complaints in trust-based occupational pension schemes. 

In both the first and second cases, TPO concluded that it would not be equitable for the trustees to recoup most of the overpayments made to the members. This third case is particularly interesting because, although TPO found that Mr M had sustained non-financial injustice because of the trustees’ maladministration in connection with the overpayment, Mr M had no valid defence to the recoupment itself.

This was because Mr M had not demonstrated the necessary detriment to establish a successful change of position, estoppel or laches defence. His overpaid benefits appeared to have been funnelled into a savings account and only used for additional income when needed – Mr M seemed to have other sources of income to maintain his standard of living so could not show that ‘but for’ the overpayments he would not have spent as he did.

Read our case summary for more details

Other developments to note 

Pension Schemes Bill progression through Parliament: House of Lords Committee stage completed

The House of Lords carried out its Committee stage detailed review of the Pension Schemes Bill during January and February 2026, following which a new version was published. 

Despite concerns regarding the skeletal nature of the Bill and the defined contribution (DC) megafunds provisions, not least, the Government’s ability to introduce mandated asset allocation, no material changes were made to the Bill. Furthermore, the proposed amendment deleting the legal proceedings exclusion from the Virgin Media legislative remedy has not been taken forward. 

It was confirmed that the Government plans to legislate “when parliamentary time allows” so that it can produce the promised statutory investment guidance for trust-based schemes and that it intends to consult on draft guidance later this spring.

The Bill will receive Royal Assent when it has been through the final two stages in the Lords and after amendments have been considered during the ‘Ping-Pong’ stage.

Data (Use and Access) Act commencement regulations

The Data (Use and Access) Act 2025 (Commencement No. 6 and Transitional and Saving Provisions) Regulations 2026 brought most of the Data (Use and Access) Act 2025 data protection provisions into force on 5 February 2026 (so far as they were not already in force). This includes provisions relating to lawfulness of processing, data subject requests, automated decision-making, powers of the Information Commissioner’s Office, and transfers of personal data to third countries. The Act’s provisions relating to data subject complaints are being brought into force on 19 June 2026. The Information Commissioner’s Office’s (ICO) guidance on data protection complaints can be accessed here.

The ICO has confirmed that its guidance on subject access requests is ready to use and that it is continuing to produce new and updated guidance. 

The Pensions Regulator (TPR) Determination Notice ordering vesting of scheme assets in trustee

TPR’s Determinations Panel has ordered that the Vedius Pension Trust’s assets be vested in its independent trustee under section 9 of the Pensions Act 1995. This followed concerns over governance, conflicts, and trustee knowledge and understanding.

TPR had appointed an independent trustee back in April 2024 pursuant to section 7(3)(b) of the 1995 Act. However, using this power did not automatically vest the scheme’s assets in the new trustee, and the independent trustee faced resistance from the former trustee in obtaining documents and transferring assets. Given the disproportionately high costs of obtaining a vesting order from the High Court, the Panel found a section 9 vesting order would be in members’ interests assisting effective scheme administration and more efficient scheme management.

The Pension Protection Fund (PPF) confirms 2026/27 conventional levy will be zero

The PPF has confirmed that it will keep a zero conventional PPF levy in 2026/27. It reported its plan to do so back in November 2025, but this was dependent on progress with the Pension Schemes Bill’s levy flexibility measures. A proportionate Alternative Covenant Scheme levy will be retained given developments in the superfund sector.

Expert pensions advice

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