Aptia, a leading provider of pension administration, consultancy and actuarial services, has published a white paper examining the practicalities of collective defined contribution (CDC) pensions delivered through unconnected multi-employer schemes (UMES).
'Unconnected Multi-Employer CDC Schemes in Practice' sets out what prospective providers, trustees and employers need to know, as commercial ‘unconnected multi-employer’ CDC schemes prepare to enter the UK pensions market in 2027.
The paper follows the introduction of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025, which came into force on 31 July 2026.
For the first time, these regulations allow commercial providers to offer CDC arrangements to multiple unconnected employers. This broadens access to CDC, making it a viable option for a much wider range of organisations - including those participating through master trusts.
Research into how these schemes are likely to operate in practice is limited, and so the paper is designed to help employers and trustees better understand what ‘good’ looks like when assessing prospective CDC schemes. It also considers the steps involved in getting a CDC UMES authorised.
The paper explores key considerations - including governance and authorisation requirements, approaches to benefit design such as dynamic accrual, and the tax treatment of CDC benefits. The paper also highlights the importance of clear and effective member communications in a model where benefits are targeted rather than guaranteed.
Drawing on Aptia’s experience in supporting requests for information and proposals from prospective CDC UMES providers, the paper looks in detail at two stages of a scheme’s development: authorisation, covering what The Pensions Regulator requires of scheme proprietors before a scheme can accept contributions; and operation, covering how benefits are likely to be designed and delivered once schemes go live – expected from 2027 onwards.
John Wilson, Aptia’s Heads of Pensions Technical and author of the paper, said: ‘Interest in CDC has grown steadily over recent years, but until now the practical detail of how a multi-employer scheme gets authorised and then actually runs day to day has been thin on the ground.
‘Employers weighing up CDC as an option need to know what good governance and scheme design look like, not just the theory of why collective pensions can deliver better outcomes. That’s the knowledge gap we aim to close with this paper.’
Dr Hari Mann, Co-Chair, CDC Forum, said: ‘The introduction of Collective Defined Contribution (CDC) pensions presents an important opportunity for employers to rethink how they approach pension provision, not simply in terms of new models, but in assessing whether their existing arrangements remain fit for purpose. Our research at the CDC Pensions Forum suggests that CDC arrangements have the potential to deliver retirement outcomes between 25% and 55% higher than comparable alternatives.
‘Any significant innovation in pensions requires careful consideration, robust due diligence and access to the right expertise. Aptia’s White Paper makes a valuable contribution by helping to bridge the gap between understanding the potential of CDC and identifying the practical steps employers need to take. It provides a timely and important foundation for informed decision-making as employers consider the next stage of their pensions journey.’
NOTES TO EDITORS
- Founded to shape the future of pensions, health, and insurance solutions, Aptia is a leading UK pensions consultant and administrator, and employee benefits administrator in the US, and is 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's UK business is the largest third-party private sector pensions administration provider, serving more than 1,600 clients and over three million members. Its clients include trustees, master trusts and insurers, for whom it provides administration and consulting services across both DB and DC pension schemes.
- Aptia has made significant investment in current and emerging technologies, including artificial intelligence, automation and data-driven insights, ensuring it remains at the forefront of digital transformation and innovation within the pensions industry.
- 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.
Click here to download whitepaper
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
