TPR CDC Code of Practice Consultation

Commenting on TPR CDC Code of Practice consultation, Paul Waters, Head of DC Markets, Hymans Robertson, said:

“Today’s draft Code of Practice provides the next level of detail needed for the industry to deliver whole of life UMES CDC schemes effectively. The principles and benefits of CDC – sharing investment and longevity risk across members to deliver a higher, secure income for life are clear. As are the trade-offs – forgoing the flexibility, control and ability to pass on unspent pot as in DC, and without the certainty that comes from an annuity.

“The draft Code allows us to further develop the detailed design points needed for a successful CDC scheme. Business plans, continuity plans, governances processes and structures, investment strategy, communications and actuarial approaches. Much of the design work has already been prepared by the most advanced scheme proprietors and the draft Code provides the next level of detail. It also helps proprietors prepare for authorisation by the Pensions Regulator.

“We are pleased to see this latest milestone reached on schedule, helping the industry remain on track for members to benefit from CDC in 2027. UMES CDC schemes are the gateway for employers to be able to access CDC in a practical and affordable way, fundamental to its growth in the UK.”

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