7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

Government plans for DB surplus

On 28 January 2025, the Government announced plans to lift restrictions on how well-funded, occupational DB schemes that are “performing well” will be able to invest their surplus funds. It explains that legislative changes could enable “all DB schemes to change their rules to permit surplus extraction where there is trustee-employer agreement”. The intention is that trustees could strike a “deal” with employers to enable members to benefit as well.

The Government intends to set out the details of its surplus policy in its response to the Options for Defined Benefits consultation, which is expected in the spring.

TPR has expressed its support for the proposals, with Nausicaa Delfas, TPR’s Chief Executive, noting that whilst TPR’s “first priority must be to ensure pension scheme members have the best chance of receiving their promised benefits”, it supports efforts to help trustees and employers “consider how to safely release surplus if it can improve member benefits or unlock investment in the wider economy”.

PPF levy estimate reduced to £45 million for 2025/26

The PPF confirmed on 30 January 2025 that its levy estimate for 2025/26 will be reduced to £45 million. This is a significant reduction on the £100 million estimate initially proposed and will be the lowest ever levy. It estimates that 99.7% of levy payers should see a reduction in their levy next year.

The final levy rules include a new provision that enables the PPF Board to calculate a zero levy if appropriate legislative changes that would give it greater flexibility in setting the levy are brought forward, and sufficiently progressed, over the course of 2025/26.

ICO blogs about data protection myths and AI

On 28 January 2025, the ICO published a blog on “debunking data protection myths about AI”. The blog tackles some “fundamental misconceptions” around AI, helpfully summarising individuals rights regarding their data being used for AI training, and reminding AI developers of the need to be transparent and to ensure they are complying with data protection rules when using people’s data, regardless of whether they are using the latest AI technology.