The Pensions Regulator (TPR) has set out its new code of practice for collective defined contribution (CDC) schemes in Parliament today.
This follows a recent consultation on an updated code of practice for these new schemes. This code is expected to come into force in mid-October, with a view to new multi-employer CDCs launching in early 2027.
TPR has confirmed that it is in discussion with a number of market entrants. TPT Retirement Solutions has confirmed it is looking to launch a whole-of-life CDC with LifeSight announcing it wants to launch a retirement-only version.
The current code of practice applies to whole-of-life CDC, with retirement CDC (RCDC) currently under consultation.
Providers will need to apply to TPR for authorisation before taking on any CDC business.
The revised code sets out TPR’s expectations of CDC schemes, the criteria for their authorisation, and how TPR will use its powers in this market.
TPR’s executive director of strategy, policy and analysis, Richard Knox, says: “Our goal is to help transform a savings system into a pension model that offers people reliable, sustainable income throughout retirement.
“CDC schemes can help to deliver that future. We are already in discussions with several potential entrants to this market. I encourage others considering offering a CDC service to speak with our innovation service.”
TPT head of CDC Paul Eagles, says: “The CDC Code being laid in Parliament, marks an important milestone in bringing multi-employer CDC to the UK market. It reflects the constructive engagement between TPR and the broader industry, and provides a positive step for schemes to move forward with confidence.
“As we continue our work to launch the UK’s first multi-employer CDC scheme, we look forward to ongoing engagement with regulators to help ensure it delivers good outcomes for members.”
