Schemes prepare for Virgin Media remedy

Schemes in the UK are rapidly preparing to implement the new Virgin Media remedy following its inclusion in the Pension Schemes Act 2026, as revealed by a recent survey conducted by Sacker & Partners LLP (Sackers). During a webinar, polling showed that 33% of pension schemes consider themselves “highly likely” to utilise this remedy, with another 37% indicating it is a possibility worth further investigation. Among those schemes that expect to take action, 5% plan to do so immediately, while 37% aim to proceed within the first year.

James Bingham, partner at Sackers, expressed optimism about the new law, stating that “the introduction of the Virgin Media remedy is a very welcome and pragmatic step forward for the industry.” He noted the ongoing discussions surrounding this remedy and highlighted the extensive effort from schemes and advisers to clarify their positions over recent years. Bingham welcomes the legislative change as a definitive resolution to a lingering issue that trustees have grappled with.

According to Bingham, “the legislation provides a practical and relatively straightforward route forward” with its clear and workable gateway principles, offering schemes greater certainty regarding their next steps. However, he cautioned that implementation will require careful consideration of the availability and quality of historic member data, which is not always readily accessible. He advised that retrieving such data can be time-consuming and may involve actuarial and evidential challenges.

Bingham mentioned the importance of approaching the process with a sense of realism, stating, “while the remedy provides a clear route forward for those that can use it, it’s important to be realistic about the work involved and the time it may take to complete.” He also emphasised the necessity for schemes to adhere to actuarial procedures and maintain detailed documentation throughout the implementation process.

In conclusion, Bingham remarked that a diligent approach should ultimately pave the way for much-needed clarity regarding affected amendments, enabling ongoing benefits administration to align with current practices. As schemes prepare for this legislative shift, the focus now pivots to effectively navigating the complexities involved in execution