Sackers comments on revised CDC code of practice consultation

“Following on from the DWP’s publication of final regulations in October paving the way for whole-life unconnected multiple employer collective DC schemes (“UMES CDC”), TPR today launched a consultation on a “new look” CDC code of practice. The consultation closes on 13 February 2026, with TPR anticipating being able to accept applications from the beginning of August and the first UMES CDC schemes becoming operational in early 2027.”

Andrew Worthington, partner, comments: “Viewed by the Government as a vital tool to improving pensions options available to employers and savers, today’s announcement represents the next stage in the evolution of CDC schemes.”

“As is to be expected, the draft code is very granular, covering the entire journey of a prospective UMES CDC, from application through to the consequences of triggering events, and everything in between. In what looks like being the final major pensions present of the year, there is therefore a lot to unwrap over the festive season.”

“Today’s consultation is designed to help fulfil government ambitions to deliver wider access for pensions savers to lower risk and better outcome pensions. If things progress as planned, this time next year, new UMES CDC schemes could be about to be unwrapped. With the introduction of at-retirement CDC arrangements also in the mix, Christmas pensions wish lists may be looking a little different next December.”