TPR is inviting the industry to respond to its consultation on a new-look CDC code of practice allowing for the introduction of multi-employer schemes from next summer. The revised code sets out the criteria for authorisation, TPR’s expectations of multi-employer CDC schemes, and how it will use its powers to support this new innovation to market.
Building on the existing code for single employer CDC, the consultation includes new expectations, including the:
company or person that financially supports the schemeway the scheme is promoted or marketedfitness and propriety of key personnel associated with the scheme
CDC schemes can provide a potentially higher retirement income than defined contribution schemes and members of such schemes do not have to make difficult decisions as they approach retirement. Until recently, legislation only allowed for single employer schemes. The new regulations and revised code will allow third-party propositions who can offer their scheme to multiple unconnected employers to come to market. They will need to apply to TPR for authorisation before they can take on business.
Minister for Pensions, Torsten Bell, said: "Collective defined contribution schemes are a hugely important tool for us improving the pensions landscape – giving savers, employers and providers more options as we seek to deliver better retirement. This consultation moves us closer to giving more workers access to lower risk, better outcome pensions, helping deliver a higher standard of living in retirement.”
TPR’s Chief Executive, Nausicaa Delfas, said: “We’re determined to help turn a savings system into a pension system which provides a sustainable income through later life. CDC could play a role in this, and our consultation marks an exciting development in the journey to help make this innovation available to more people. It’s important that new models provide security and value, and we welcome views on our consultation to make sure that balance is right. I also invite trustees and corporates considering multi-employer CDC to speak with our innovations service as soon as they can, so they are well placed to apply to TPR for authorisation next summer.”
Today’s consultation follows the government publishing multi-employer CDC regulations on 23 October. The regulations are expected to come into force at the end of July 2026, on the same day as TPR’s revised code. TPR anticipates being able to accept applications from the beginning of August. Schemes could be operating in early 2027.
TPR is currently able to authorise single employer schemes and is working with the DWP on the third stage of establishing a CDC market in the UK – retirement only CDC schemes.
The consultation will close on Friday 13 February 2026.
CDC schemes provide an innovative alternative to traditional defined benefit (DB) and defined contribution (DC) pension schemes. In CDC schemes, member and employer contributions are pooled in a collective fund from which an aspired to pension income for life is drawn. The pooling of longevity and investment risks makes CDC schemes more resilient to market shocks. Unlike DB schemes, the pension benefits are not guaranteed in CDC schemes, so they provide employers with predictable costs. External modelling suggests that they can also provide, on average, better returns for members than traditional DC schemes.
The Pension Schemes Act 2021 introduced an authorisation and supervision regime for CDC schemes. They must show they meet stringent criteria including that those who run the scheme meet fitness and propriety requirements, have the right systems and processes in place, can show the scheme is financially sustainable and have robust member communications. TPR has powers to intervene when necessary. Currently, CDC schemes can be set up by single employers, for that employer only, or for employers in the same group of companies.TPR is the regulator of work-based pension schemes in the UK. Its statutory objectives are to:
protect members’ benefits
reduce the risk of calls on the Pension Protection Fund (PPF)
promote, and to improve understanding of, the good administration of work-based pension schemes
maximise employer compliance with automatic enrolment duties
minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only)
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