U.K. Pension Schemes Face Governance Challenges Amid Rising Oversight

A study by Law Debenture has highlighted gaps in how U.K. pension schemes oversee administration, with many trustees yet to review service providers despite increasing regulatory scrutiny and changing member expectations.

The survey, covering trustees from 119 defined benefit and defined contribution pension schemes, found that 38% of schemes are planning, considering, or undertaking an administration review. This includes 16% benchmarking their providers, 14% conducting service reviews, and 8% exploring a provider replacement.

However, 62% of schemes reported no plans to review or benchmark their administration arrangements. Among schemes seeking a new provider, 80% cited poor service, particularly in project delivery, as the main reason.

The findings follow updated guidance issued by The Pensions Regulator in December, which reaffirmed that trustees remain responsible for administration standards even when services are outsourced.

The report also found that 37% of schemes not planning a review cited their focus on endgame strategies, raising concerns about administration and data governance ahead of major transitions.