The Pensions Regulator is set to accept Collective Defined Contribution applications from August
15 June 2022
The Pensions Regulator (TPR) has laid before parliament a code of conduct for Collective Defined Contribution (CDC) pensions. This will allow time for the legislative process, with the expected date applications can be made being 1 August 2022.
The code will expand on the regulations that received royal assent in February 2021 under The Pensions Schemes Act 2021. The act gives TPR the powers to intervene where required for schemes not “built on sound foundations”.
On the same date (9 June 2022), TPR released its response to the consultation seeking views on the proposed code of conduct. This document indicates that many respondents question if the code is proportionate for smaller schemes, such as those for a single employer. The level of detail included could make the process ‘onerous’ for all but larger multi-employer schemes.
Other feedback indicates a need for more useful guidance as the regime expands. Initially, CDC schemes will only be an option to single employers, or two or more connected employers. The Pensions Schemes Act 2021 allows for this to be expanded later.
TPR’s executive director of regulatory policy, David Fairs, Said:
“Laying our CDC code in parliament is a significant step as we prepare for a new type of scheme that paves the way for an alternative and innovative pension saving solution to traditional defined benefit and defined contribution arrangements.
“Our focus is on protecting savers, and while the code now clarifies a number of points raised during our consultation to explain how it reflects legislation, it continues to set the right bar for the authorisation and supervision of CDC schemes.”
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