Sackers welcomes new CDC chapter

Partner Helen Ball comments: “An exciting new chapter of CDC begins on 31 July. Regulations will come into force enabling multi-employer schemes for unconnected employers to become authorised. This will open up CDC to a much broader section of the market.

The first of these “UMES” schemes could be up and running as early as next year for any providers who are already preparing to enter the authorisation process with TPR.

As policymakers continue to focus on retirement adequacy, CDC schemes could be a promising way to help bridge the pension income gap while also meeting the government’s vision for future default pensions under guided retirement.

The challenge now shifts from policy to delivery. All parties involved in CDC projects – whether providers, trustees or employers – will be keen to make the most of this opportunity to create lasting improvements in retirement outcomes.  We look forward to doing our part to help make this a success.”