​​​​​​​IFoA supports development of CDC pension provision

Institute and Faculty of Actuaries (IFoA) member Simon Eagle today participated in a panel discussion with Pensions Minister Guy Opperman MP on the future of Collective Defined Contribution (CDC) schemes within the UK. The event, focussing on the road ahead for CDC pensions in the UK, was hosted by the Royal Society of Art (RSA) CDC forum, of which IFoA is a member.

Speaking after the event, IFoA CDC Working Party Chair Simon Eagle said:

“Good pension outcomes vary by individual in the UK depending on income needs and their desire to manage their own retirement savings. The IFoA’s view is that better options could be made available for some groups.  We are open-minded about the possibilities and have been investigating CDC pensions as a potential solution.

“With the IFoA’s support, fundamental steps have already been taken to enable CDC in the UK through the Pension Schemes Act 2021 and associated regulations. What is clear now, is that there are further questions to answer in terms of broadening scheme design and facilitating adoption for willing employers and employees in the UK.

“We see this as only the beginning and are pleased to see the Pensions Minister is keen to move quickly on the introduction of multi-employer and master trust CDC schemes in order to provide wider access to CDC including for employees of smaller organisations.

“We look forward to further Department for Work and Pensions (DWP) consultations on a package of prospective design principles and approaches to accommodate new types of CDC schemes later this year.”

~ENDS~

Contact
Sonia Sequeira, Media Relations Manager, IFoA
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.

Research undertaken by the IFoA is not commercial.  As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest. 

Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s of London.

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including COVID-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.