United Kingdom | Publication | May 2025
On April 29, 2025, Minister for Pensions Torsten Bell confirmed that new regulations will be laid in the autumn to allow for multi-employer collective defined contribution (CDC) schemes to be established. The related press release can be read here.
Multi-employer CDC schemes would allow a range of unconnected employers to pool their employees' pension pots into a collective fund, making administrative savings, sharing investment risks and boosting returns for members. The Government believes that due to their size, CDC schemes can offer an efficient vehicle for supporting economic growth, with similar collective funds in Canada and Australia having invested in a wide range of sectors and assets.
Mr Bell also confirmed the Government’s intention to deliver decumulation-only CDC schemes, which would allow certain savers with DC schemes to access CDC funds and offer retirees the chance to buy longer-term, pooled retirement products that deliver stability for pensioners.
Publication
The DWP has confirmed that primary legislation enabling the introduction of a default consolidator model for small DC pension pots (up to £1,000) will be included in the forthcoming Pension Schemes Bill expected before Parliament’s summer recess.
Publication
The Regulator's annual DB funding statement for 2025 was published on April 29, 2025. This statement and the accompanying analysis paper are particularly relevant to schemes with valuation dates between September 22, 2024, and September 21, 2025, now known as Tranche 24/25 or T24/25 to reflect the calendar year (previously known as Tranche 20 or T20).
Publication
The Regulator has published a report entitled Market oversight: Market volatility and what trustees should do, which setting out its insight into DB and DC schemes' response to the current market environment and highlighting risks of which trustees should be aware.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2025