Marvin OnumonuThe Pensions Regulator (TPR) has launched a consultation for its new code of practice on multi-employer collective defined contribution (CDC) pension schemes.
The regulator invited the industry to respond, with the code due to come in next summer.
The code sets out how multi-employer CDC schemes will be authorised, what the regulator expects, and how it will use its powers to support the development of these schemes.
The code builds on rules for single employer CDC schemes and introduces new requirements for who financially supports the scheme, how it is promoted, and checks on the key people running it.
CDC schemes aim to give members a more stable retirement income than defined contribution (DC) schemes, without requiring complicated decisions from savers as they near retirement.
Until now, only single employer CDC schemes were allowed.
The new regulations mean third parties can offer CDC schemes to several unconnected employers, but must apply for authorisation from TPR before taking on business.
The Government released the regulations for multi-employer CDC schemes on 23rd October.
These are due to come into force at the end of July 2026.
TPR expects to start accepting applications in early August 2026, with schemes set to be operating in early 2027.
Pensions Minister Torsten Bell, said: “Collective defined contribution schemes are a hugely important tool for us 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.”
Nausicaa Delfas, CEO at TPR, 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 balance is right.”
Delfas added: “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 can currently authorise single employer CDC schemes and is working with the Department for Work and Pensions (DWP) on the next stage, which will focus on retirement-only CDC schemes.
The consultation closes on 13th February 2026.
