Guidance: Preston guidance: September 2026

This technical guidance is relevant to employers that participate in public service pension schemes, as well as financial services firms that administer, advise on, or invest for such schemes. Compliance teams should ensure that payroll and pension systems are updated to reflect the new factors, which affect the calculation of certain contributions or adjustments. Although the update is routine, incorrect application could lead to contribution errors, interest charges, or scheme compliance breaches.

Firms should verify whether they are in scope, liaise with pension administrators, and document any changes. For financial services firms acting as employers or service providers, the key action is to integrate the revised factors into existing processes promptly. RegCanary advises that compliance and HR functions review the guidance, assess operational impact, and schedule any necessary system or training updates.

Given the narrow technical scope, the regulatory risk is low, but timely implementation remains important to avoid future liabilities. This is an informational update for most financial services firms, with primary relevance to pension funds and their advisers.