Aon now has a second partner with the required professional qualifications to take on the role of a scheme actuary for a CDC scheme.
Chintan Gandhi, partner and head of Collective Defined Contribution (CDC) at Aon recently gained the Institute and Faculty of Actuaries’ CDC Scheme Actuary’ Practising Certificate (CDC PC).
This qualification mirrors the requirements for DB pension schemes.
The CDC PC is a relatively new addition to the actuarial profession’s qualifications, only being incorporated in December 2022. The qualification criteria will evolve over the coming years to reflect the introduction of whole-life multi-employer CDC and retirement CDC schemes.
Chintan Gandhi said: “I’m pleased to be among the first group of actuaries in the UK to gain this certificate.
“We now have the necessary legislation enabling whole-life multi-employer CDC schemes, which we believe opens the floodgates for all employers – and over 25 million workers in the UK – to have the opportunity to use their defined contributions to build a pension during their working lives.
“The launch of these regulations in October marked a huge step for UK CDC, opening the market to multi-employer whole-life CDC schemes, including those provided by master trusts.
“It enables them to meet the needs of all employers and the self-employed – regardless of the size of their workforce or their contribution budgets.”
Gandhi adds: “Just before Christmas, The Pensions Regulator (TPR) issued its consultation on the extended CDC Code of Practice. This sets out the proposed regime for authorising and supervising multi-employer whole-life CDC schemes.
“Most in the industry won’t yet have had time to review this long-awaited consultation in any detail, but with this final – and key – piece of the puzzle, we, in theory, have visibility of the entire regulatory regime governing these types of pension schemes.
“It means prospective providers can now evaluate whether they can introduce multi-employer whole-life CDC schemes to the masses – and in a way that is commercially viable.
“Actuaries have played a valuable role in shaping CDC’s progress so far and will play a key part in supporting employers and schemes in their design and ongoing operation. More members of the profession pursuing and gaining this certificate will help ensure we see the swift emergence of well-designed and well-governed CDC schemes.”