Pensions - Articles - IFoA supports development of CDC pension provision

 Speaking after the event, IFoA CDC Working Party Chair Simon Eagle said: “Good pension outcomes vary by individual in the UK depending on income needs and their desire to manage their own retirement savings. The IFoA’s view is that better options could be made available for some groups. We are open-minded about the possibilities and have been investigating CDC pensions as a potential solution.

 “With the IFoA’s support, fundamental steps have already been taken to enable CDC in the UK through the Pension Schemes Act 2021 and associated regulations. What is clear now, is that there are further questions to answer in terms of broadening scheme design and facilitating adoption for willing employers and employees in the UK.

 “We see this as only the beginning and are pleased to see the Pensions Minister is keen to move quickly on the introduction of multi-employer and master trust CDC schemes in order to provide wider access to CDC including for employees of smaller organisations.

 “We look forward to further Department for Work and Pensions (DWP) consultations on a package of prospective design principles and approaches to accommodate new types of CDC schemes later this year.”