About
The purpose of the CDCWG is to monitor, comment upon and gather information about the administration implications of CDC arrangements and their introduction within the pensions industry. The group will do this by focusing on:
- The role of CDC in its various forms in the pensions marketplace (e.g. single/multi employer or master trust, and whole-life or decumulation only), its key features from an administrative perspective and who it may be suitable for
- The administrative challenges which may face those who wish to offer a multi employer CDC arrangement (with a focus on the use of CDC in decumulation situations) to ensure Government proposals take administration processes and capabilities into consideration
- How CDC arrangements could deal with the development of Customer Journey engagement and communication requirements (liaising with the PASA EnCom WG as appropriate)
- Identifying specific legislative, regulatory or process changes required to support the delivery of new initiatives relating to CDC
- Planned and potential innovation in the CDC market, e.g. to extend the reach of these arrangements or improve efficiency
- Creating relevant Guidance for trustees, administrators and sponsors on the implications of CDC
- Responding to relevant consultations and upcoming policy initiatives which are expected to impact administration in the context of CDC arrangements. This includes the DWP call for evidence on DC decumulation.
Future Plans
- monitor the appetite for CDC arrangements across the industry by engaging in discussion with representatives of other industry groups/bodies who are expressing views on CDC proposals
- prepare and publish a PASA ‘wish list’ covering the key elements of administration and communication that will need to be addressed to facilitate any good multi-employer CDC arrangement (with a focus on decumulation situations)
- to gather feedback on the wish list following its publication and to prepare and publish Guidance on how the wish list could be addressed most effectively by trustees, administrators and providers.
Publications
February 2024 – Initial observations on CDC developments paper
DWP Consultation CDC Schemes – March 2023
Members
Emma Watkins (Board sponsor)
Helen Ball (Chair)
Emma Douglas
Tom Hargreaves