The Pensions Regulator (TPR) has launched a consultation on its revised collective defined contribution (CDC) code of practice, allowing for the introduction of multi-employer schemes from next summer. 

The revised code sets out the criteria for authorisation, TPR’s expectations of multi-employer CDC schemes, and how it will use its powers to support this new innovation to market.

Building on the existing code for single-employer CDC, the consultation includes new expectations, including the company or person that financially supports the scheme; the way the scheme is promoted or marketed; and the fitness and propriety of key personnel associated with the scheme. 

This is aligned with the recent draft multi-employer regulations shared by the Department for Work and Pensions (DWP), which are expected to come into force at the end of July 2026, on the same day as TPR’s revised code.

Given this, TPR said that it anticipates being able to accept applications from the beginning of August 2026, meaning schemes could be operating in early 2027.

Commenting on the update, Pensions Minister, Torsten Bell, commented: "CDC schemes are a hugely important tool for us in improving the pensions landscape – giving savers, employers and providers more options as we seek to deliver better retirement.

"This consultation moves us closer to giving more workers access to lower-risk, better-outcome pensions, helping deliver a higher standard of living in retirement.”

Adding to this, TPR chief executive, Nausicaa Delfas, said: “We’re determined to help turn a savings system into a pension system which provides a sustainable income through later life.

"CDC could play a role in this, and our consultation marks an exciting development in the journey to help make this innovation available to more people. 

“It’s important that new models provide security and value, and we welcome views on our consultation to make sure that the balance is right. 

“I also invite trustees and corporates considering multi-employer CDC to speak with our innovations service as soon as they can, so they are well placed to apply to TPR for authorisation next summer.”

TPR confirmed that it is also working with the DWP on the third stage of establishing a CDC market in the UK – retirement-only CDC schemes.

However, the code has not been updated to reflect this next stage of CDC at this point, despite previous calls from industry experts suggesting that this was needed to ensure trustees and potential retirement CDC providers understand the regulator's expectations in this area.

---