Pensions Minister Guy Opperman suggested that the government should capitalise on industry enthusiasm to extend CDC to other types of pension schemes
Pensions Minister, Guy Opperman, has said he is keen to move quickly on plans to extend collective defined contribution (CDC) pension schemes to more savers, with a consultation on a package of prospective design principles expected ‘later this year’.
Speaking at the Royal Society of Arts (RSA) CDC Forum, Opperman suggested that the government should capitalise on industry enthusiasm to extend CDC to other types of pension schemes, calling on the industry for help in making this a reality.
Whilst the regulations coming into force on 1 August 2022 will provide for single and connected employer CDC schemes, some parties have already expressed interest in pursuing multi-employer CDC schemes as an offer for members.
In light of this, the Department for Work and Pensions (DWP) has confirmed its intent to consult on a package of prospective design principles and approaches to accommodate new types of CDC schemes ‘later this year’.
These design principles aim to bring the potential benefits of CDC to more savers in the UK in an appropriate way, capitalising on the enthusiasm that the industry has shown for innovation in this area.
Pensions Minister, Guy Opperman, commented: CDC schemes have the potential to transform the UK pensions landscape and deliver better retirement outcomes for millions of pension savers.
I firmly believe that we should capitalise on the enthusiasm that is building for extending CDC to other types of pension scheme, such as multi-employer schemes and master trusts, he said.
He said: I am keen to move quickly, but we must get this right if it is to work. That is why I am calling on all those who are seeking to deliver the full benefits of CDC to work with us to help make this a reality.