Regulations to allow for unconnected multi-employer collective defined contribution (CDC) schemes come into force on 31 July.
They remove the restrictions that previously limited CDC schemes to single or connected employers, such as Royal Mail’s Collective Pension Plan. A CDC scheme pools investments into a collective fund and provides an income for life.
The Pensions Regular is now open to applications for authorisation from multi-employer CDC plans and welcomes innovations that could provide members with a sustainable income in retirement.
TPR said “Occupational pensions are changing in the UK and CDC schemes could play a substantial role in the future”
To help schemes prepare, TPR has published detailed CDC guidance covering the authorisation process and key regulatory requirements (link to TPR guidance).
In particular, TPR’s Code of Practice for CDC schemes came into force on 31 July 2026. It sets out expectations of the conduct and practice that governing bodies should meet to comply with their duties in pensions legislation.