Govt to ‘move to’ multi-employer CDC pension regulations in 2022/23

The government plans to move to the draft regulations for multi-employer collective defined contribution (CDC) pensions in “the latter part of this year, going into next year”, Pensions Minister, Guy Opperman, has stated.

Speaking at a delegated legislation committee on the draft regulations for CDC pensions, both SNP MP, Anum Qaisar, and Labour MP, Matt Rodda, indicated their respective parties’ support for the regulations that will introduce CDC schemes to the UK.

“I thank colleagues for their responses and their support for these regulations,” said Opperman.

“We will move to multi-employer CDCs in the latter part of this year, going into next year, and will move at a sufficient pace that we feel is appropriate.

“There will definitely be an opportunity to respond to these regulations and the draft code, which I strongly urge colleagues and the industry to read.”

Although he described CDC pensions as “a cost-effective way of saving for retirement” when done properly, Rodda emphasised the need for the intentions of the process to be made “as clear as possible”.

“Colleagues will know that, in the pensions world, uncertainty can be compounded over time and lead to costs or unnecessary risk,” Rodda continued.

“That will mean ensuring that the further regulations that the government hope to bring through in March are watertight.”

He also raised concerns about the use of master trusts as a model or template for CDC schemes, but Opperman said that the two pension models were “not a like-for-like” in any way.

Rodda called for the government to allow time for opportunity for experts, stakeholders, politicians and the Department for Work and Pensions (DWP) to review CDC pensions as they developed, a point which Opperman accepted.

Also speaking at the session, Qaisar used the opportunity to press Opperman on reforming auto-enrolment pensions.

She stated that the SNP “demands” that the government lower the age threshold from 22 to 16 and to remove the lower limit on qualifying earnings.

In response, Opperman said that the government will bring in the 2017 review of automatic enrolment “in the fullness of time”.

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