The Pensions Regulator’s (TPR) updated code of practice for collective defined contribution (CDC) schemes has been laid before parliament, bringing multi‑employer CDC schemes a step closer to market.

The Pensions Regulator’s draft Code of Practice: Authorisation and Supervision of Collective Defined Contribution Schemes 2026, followed a recent consultation and will expand the existing framework to allow CDC schemes to operate across multiple employers.

Under the new regulations, providers would be able to offer CDC schemes to multiple unconnected employers but would be required to apply to TPR for authorisation before taking on business.

The updated code outlined TPR’s expectations of CDC schemes, the criteria for authorisation and how it will exercise its powers in supervising the market.

The code was accompanied by an explanatory memorandum to explain the background, policy context and legal effect of the updated code, which replaces the existing code issued in 2022.

TPR said it was already in discussion with several potential market entrants ahead of the code’s implementation, which is expected in mid‑October, with multi‑employer schemes potentially operating from early 2027.

Commenting on the updated CDC code, TPR 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.”

The regulator also published its response to the 29 submissions received during the consultation on the updated code.

According to the feedback, respondents universally supported the proposal to replace the existing CDC code with a single, consolidated code covering both single-employer and multi-employer CDC schemes.

While they welcomed the streamlined approach, several emphasised the need to clarify areas where the rules differ between scheme types.

Respondents did not raise any significant concerns about TPR’s approach. The main point raised was the need for clarity on where expectations differed between single-employer and multi-employer CDC schemes.

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