Collective defined contribution schemes

STOP PRESS: The Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2024, SI 2024/334 amend reg 17, reg 19 and Schedule 6 of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022, SI 2022/225 by making technical amendments to clarify two areas of this SI. The first amendment concerns the provisions governing how reductions to member benefits in CDC schemes can be managed so that it operates as originally intended to mitigate, where appropriate, the impact on members. The second amendment clarifies the categories of flexi-access drawdown fund to which accrued rights in a collective money purchase scheme that is being wound up, can be transferred.

In effect, the provisions of Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2024, SI 2024/334:

• amend SI 2022/225, reg 17 so that increases required in the rate or amount of benefits under a collective money purchase scheme must be applied to offset any planned reduction under a multi-annual reduction, or reductions, then in effect. Further, SI 2022/255, reg17(4) is amended so that scheme rules must provide that the methodology for applying increases set out in