FRC issues guidance to support actuaries dealing with historic amendments to pension rules

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Published: 23 January 2026

The Financial Reporting Council (FRC) has today issued guidance to help pension scheme actuaries provide retrospective confirmation to validate historic changes to pension scheme rules.

Published ahead of upcoming legislation related to the Pensions Schemes Bill, designed to address industry-wide uncertainty raised by the “Virgin Media v NTL Pension Trustees” judgment[1] , the guidance gives actuaries a practical framework to support the application of their judgment and strengthen confidence that historic changes made to UK pension schemes have complied with legal requirements.

The judgment highlighted that some pension schemes may be unable to demonstrate that past amendments to their rules were valid, potentially leaving them with higher liabilities than expected. Today’s Technical Actuarial Guidance[2] provides practical, non-prescriptive guidance for actuaries, including examples illustrating how to apply a proportionate approach in collecting information and forming judgements when historic records are incomplete.

The guidance has been promptly developed in close collaboration with industry, including extensive input from the Institute and Faculty of Actuaries[3] and the Association of Consulting Actuaries. To give actuaries sufficient time to prepare, the guidance has been published ahead of the Royal Assent. It may be updated as the Pension Schemes Bill progresses through Parliament.

The FRC’s Executive Director of Regulatory Standards, Mark Babington said:

"The Virgin Media legal case has caused considerable concern across the pensions industry. Our guidance provides actuaries with clear, practical help on how to work proportionately when reviewing historic scheme changes. This will support sound judgement and strengthen confidence that pension schemes have complied with their legal obligations.

In turn, this will provide pension holders with greater certainty that the investment decisions underpinning their retirement have been appropriately assessed, and the scheme will deliver the expected benefits for its members.”

The Pensions Regulator’s Director of Policy, Joey Patel, said:

“This guidance will be valuable in supporting actuaries to help affected scheme members without disproportionate cost to schemes. We will also issue guidance on this issue in Spring to support trustees to navigate this issue while ensuring that schemes are continuously in compliance with legal requirements.”

Read the Technical Actuarial Guidance: Confirmation under sections 101 and 105 of the Pension Schemes Act 2026.

Footnotes

  1. [1]

    In 2023, the High Court ruled that certain amendments to the Virgin Media pension scheme were void because no evidence could be produced to show that the statutory actuarial confirmation required under section 37 of the Pension Schemes Act 1993 had been obtained. The judgment therefore raised significant uncertainty across the pensions industry because many schemes may be unable to evidence compliance for historic amendments, exposing long‑standing rule changes to potential invalidity.
  2. [2]

    This guidance meets the FRC’s obligations for developing technical actuarial standards and supporting guidance, as well as its public interest mandate.
  3. [3]

    Courtesy of the Institute and Faculty of Actuaries, the guidance includes material exploring ethical matters to assist actuaries in applying the Actuaries’ Code.

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