Earlier this month, the multi-employer collective defined contribution (CDC) regulations went live, marking another important milestone in the development of the provision. This was accompanied by the regulators’ new code of practice, which expands the existing framework to allow CDC schemes to operate across multiple unconnected employers.
However, while legislation is an important step in establishing multi-employer CDC, its success will ultimately depend on how schemes are designed and executed.
To support the launch of its CDC proposition, TPT Retirement Solutions launched a new CDC modelling capability, powered by Moody’s PFaroe software, as it prepares to launch the UK’s first multi-employer CDC scheme. The system can model potential future pension increases for members as well as provide asset-liability modelling, both of which will support the development of CDC.
Aon confirmed it is looking to introduce a whole-life multi-employer CDC section alongside defined contribution (DC) benefits within the Aon master trust from 2028, joining the currently small number of providers exploring the launch of a multi-employer CDC scheme.
Elsewhere, Aon has launched Future DB, a service designed to help trustees and sponsors overcome barriers to implementing their chosen endgame strategy, whether buyout or run-on, as more pension schemes reach their target funding levels.
Pension risk transfers
In other news, Standard Life has secured up to £2bn in backing through partnerships with CVC Capital Partners, Prudential Financial, Goldman Sachs and MS&AD Insurance Group Holdings to expand its pensions risk transfer business. The firm is targeting the larger end of the market as it looks to increase its market share.
Legal & General (L&G) has secured a £1.7bn buy-in with Wood Pension Plan, securing the benefits of the scheme’s 16,400 members.
Last year, L&G dominated the UK’s pension risk transfer industry with 27% of the market share and £10.2bn worth of transactions. In its financial results, L&G said it has a “healthy PRT pipeline” for the current year, including £17bn of transactions that it is “actively pricing on”. It expects the overall PRT market volumes to be around £50bn and an increase in large transactions compared to 2025.
The report said: “We already have sight of 10 transactions over £1bn that may complete in 2026, with the majority expected to complete in the second half of the year.”
DB surplus
Towards the end of the month, the consultation on the government’s proposals to give well-funded defined benefit (DB) schemes greater flexibility to release surplus has closed, with the industry calling for a simpler and more practical framework that preserves trustee discretion and member protection.
Under the proposed framework, surplus could be released subject to a low-dependency funding test, a three-year forward-looking funding assessment, actuarial certification and member notification. The regulations are expected to come into force in April 2027.
Items to note:
- The IPE Conference & Awards 2026 is taking place on 2 December at the Royal College of Physicians & Natural History Museum in London.
Pamela Kokoszka
UK Correspondent
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