The authorisation of the UK’s first collective defined contribution (CDC) has been highlighted as a “landmark moment” for UK pensions, with industry experts suggesting that this could be “just the beginning”. The Pensions Regulator (TPR) confirmed yesterday (13 April) that the Royal Mail Collective Pension Plan (RMCPP) successfully passed TPR’s …
Read More »Five stories you may have missed this week
Labour Party’s choice of LTA as election battleground branded ‘short-sighted’ The Labour Party’s denouncement of the government’s plan to scrap the lifetime pension allowance as a “£1bn bung to the richest 1%” is short-sighted, Barnett Waddingham says. TPR authorises Royal Mail as UK’s first CDC scheme The Pensions Regulator has …
Read More »Royal Mail Statutory Pension Scheme deficit increases; net expenditure continues to fall
The Royal Mail Statutory Pension Scheme (RMSPS) deficit increased to £50,876m as at 31 March 2022, up from £48,614 to in March 2021, according to the scheme’s latest Annual Report and Accounts. The RMSPS also recorded a net actuarial loss of £3.1bn over the past year, driven by the higher …
Read More »TPR to finalise CDC code by 1 August; work to tackle pension scams continues
The Pensions Regulator (TPR) has confirmed that it is on track to finalise the collective defined contribution (CDC) code of practice by 1 August 2022, while further work on the issue of pension scams will be published “in due course”. Speaking at the Pensions Age Northern Conference 2022, TPR lead …
Read More »Age-related contributions a potential ‘game changer’ for CDC
Allowing the use of age-related contributions in collective defined contribution (CDC) schemes could be a “game changer” in making CDC more appealing to a wider range of schemes and ensuring fairness for younger savers, according to LCP. Pensions Minister, Guy Opperman, yesterday (28 March) signaled his intent to hold a …
Read More »Royal Mail pushes ahead with CDC plans following member consultation
Royal Mail Group (RMG), the Communication Workers Union (CWU) and Unite the Union have confirmed plans for a new collective pension scheme following a successful consultation process, with the scheme to be launched by the end of 2022 or early 2023. The positive outcome to the consultation, which was launched …
Read More »Breaking: CDC legislation to come into force from 1 August 2022
The government has confirmed that draft legislation for single or connected employer Collective Money Purchase (CMP) schemes will come into force from 1 August 2022, subject to parliamentary approval. In the government response to its recent consultation on the draft regulations, the Department for Work and Pensions (DWP) highlighted the …
Read More »Employer support for CDC on the rise
Interest in collective defined contribution (CDC) pension schemes is growing, with 58 per cent of employers supporting a CDC option being available, a 6 percentage point increase on 2020, according to research from the Association of Consulting Actuaries (ACA). The ACA’s 2021 Pension trends survey also found that 54 per …
Read More »Over half of employers and trustees want CDC progress
The poll of 400 participants, conducted online in June, found the majority wanted the scheme type to be expanded to a multi-employer model, perhaps being run by master trusts. While CDC legislation has been introduced, it is currently only enabling the risk-sharing pension provision for single employers, such as Royal …
Read More »Royal Mail consults on CDC scheme proposals
Royal Mail has launched a consultation on the Royal Mail Collective Pension Plan, seeking views from CWU, Unite, employees of Royal Mail Group and employees of RM Property and Facilities Solutions Limited currently in the Royal Mail Pension Plan (RMPP). Under the proposals, those who have been with Royal Mail …
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