Pensions - Articles - New TPR code for CDC schemes

CDC schemes are a new type of collective pension. TPR is already in discussion with several possible market entrants ahead of the code coming into force.

Following its recent consultation on an updated CDC code of practice, the code has today been laid in Parliament and is expected to come into force in mid-October. Multi-employer schemes could be operating in early 2027.

The new regulations and revised code will allow providers to offer their scheme to multiple unconnected employers. They will need to apply to TPR for authorisation before taking on business.

The revised code sets out TPR’s expectations of CDC schemes, the criteria for their authorisation, and how TPR will use its powers in this market.

TPR’s Executive Director of Strategy, Policy and Analysis, Richard Knox, said: “Our goal is to help transform a savings system into a pension model that offers people reliable, sustainable income throughout retirement.

“CDC schemes can help to deliver that future. We are already in discussions with several potential entrants to this market. I encourage others considering offering a CDC service to speak with our innovation service.”

TPR is also publishing its response to the 29 responses it received to its consultation on the code.