The Pensions Minister, Torsten Bell, has confirmed that legislation enabling retirement CDC schemes will be brought forward as part of the government’s wider pensions reform agenda.
Responding to this, Malcolm Reynolds, Aptia’s UK President, said: ‘We welcome the Pensions Minister’s confirmation that legislation will be introduced later this year to allow retirement-CDC schemes. This builds on whole of life CDC regulations for non-associated multi-employer schemes which come into force in July.
‘With the potential to improve outcomes by 30% or more, CDC offers a practical way to tackle pensions inadequacy without increasing costs for employers or savers.
‘The Pensions Minister has recently observed that trust in pensions in Britain is “too low”. CDC can help with that. Many savers want a simple, reliable, DB like income in retirement, and retirement CDC is the most effective way to provide it within a DC framework. It is however important that members are properly supported with retirement decision-making and do not need to navigate complex choices and manage risks alone. That is why some many in the industry are calling for retirement CDC to be available when guided retirement measures are introduced under the Pension Schemes Bill.’
NOTES TO EDITORS
- Founded to shape the future of pensions, health, and insurance solutions, Aptia is a leading UK pensions administrator and US employee benefits administrator dedicated to simplifying complexity for businesses and individuals. It brings together cutting-edge technology and deep industry expertise to help organisations navigate an evolving landscape with clarity and confidence.
- Aptia is the UK’s largest private-sector third-party administrator serving 1200 clients and more than 3 million members, delivering solutions that drive efficiency, enhance financial security, and provide peace of mind.
- Aptia has a presence in the UK, US, India. Aptia’s strength lies in the combination of smart technology and expert teams, ensuring that managing pensions, health, and insurance is more effective. By focusing on innovation, accessibility, and client success, Aptia helps businesses take care of their people, so they can focus on what they do best.
For more information contact:
Corinne Gladstone, Aptia Head of Corporate Communications & Public Relations.
Email: media.enquiries@aptia-group.com
Sam Emery/ Emma Murphy/ Robbie Lawther/Bruno Aldridge, Quill PR
Email: Aptia@quillpr.com
