Member

The noble Viscount, Lord Younger, asked about the future of CDCs. As he will know, Royal Mail launched the UK’s first CDC pension scheme on 7 October. It will provide more than 100,000 employees with an income for life and a cash lump sum in retirement. We have had extensive engagement with several parties wanting to offer unconnected multiple-employer CDC pensions through both not-for-profit trust-based schemes and trust-based schemes intended to operate on a commercial basis. We launched a consultation on draft regulations which closes on 19 November. Those regulations are intended to extend the current CDC legislation, allowing such schemes to apply for authorisation to operate. That engagement continues and, following the consultation, I anticipate regulations will be brought forward, but the exact timetable will depend on what issues, if any, arise from the consultation.