FOI reference - FOI-109
Date - 22 April 2023
Request
You have requested the following information:
“I'd like to see the rationale for restricting Collective Defined Contribution (CDC) schemes to employers, especially documents pertaining to why they might be unsuitable as general pension products that can be made available through financial advisors or direct to public. It would also be useful to know if there is any prospect of CDC regulations changing in the near future.”
Response
Following a search of our paper and electronic records, I have established that we do not hold the information you have requested.
The Pensions Regulator operates the CDC authorisation and supervisory regime as set out by government through the Pension Schemes Act 2021 and 2022 CDC regulations. The Act sets out the perimeter for who can currently offer a CDC scheme and it is currently restricted to single and connected employers. This is government policy and so owned by the Department for Work and Pensions (DWP).
You may wish to review this consultation from DWP in 2018. This consultation set out proposals as to how a particular form of CDC scheme might work in the UK, and the legislative and regulatory regime that would be needed to support any such scheme. It gives an indication of the government’s policy intentions and likely focus of the legislation during the initial regime.
There was also a 2023 consultation regarding extending opportunities for CDC Pension Schemes. This consultation sought views on broadening CDC provision beyond single or connected employer schemes to accommodate multi-employer schemes. Also, the role of CDC in decumulation.