Hogan Lovells

Key Dates

Consultation paper issued on 6 November 2018.

Consultation period ends on 16 January 2019.


Summary

The DWP has issued a consultation paper on delivering collective defined contribution (CDC) pension schemes. The paper is intended to consider the DWP's broad proposals as to how a particular form of CDC scheme (as proposed by the Royal Mail for its employees) might work in the UK and the legislative and regulatory regime needed to support such a scheme. The paper recognises that the initial tranche of any other pooled risk schemes will need to operate within this framework. However, the DWP intends that the legislation may be amended by secondary legislation, so that the framework may be modified in light of experience or if employers come forward with different appropriate proposals.

Points to note about the proposals include the following.

Governance and scheme structure

Authorisation of CDC schemes

Actuarial valuations

Benefits

Managing risk

Member communications and disclosure

Tax regime

Auto-enrolment

Investment

Member charges

Transfers

Legislation and next steps



Date Accessed: 28/05/2022