Date published:
The UK pensions system has historically operated on a binary basis, with Defined Benefit (DB) schemes placing risk on employers through guaranteed outcomes, and Defined Contribution (DC) schemes placing risk on individuals with no guaranteed retirement income. Collective Money Purchase (CMP) schemes offer an alternative model by pooling employer and member contributions into a single fund to provide a target retirement income, with risks and returns shared across members.
Under the Pension Schemes Act 2021, CMP schemes were initially limited to single employers or connected employer groups. These Regulations will extend existing provision to allow participation by multiple unconnected employers, thereby broadening access to collective pension arrangements.
The framework introduces appropriate authorisation, supervisory requirements, and safeguards to ensure effective regulatory oversight, member protection, and market confidence while enabling a wider range of employers to offer CMP schemes.
Exisiting/Revised/New: Revised
Date of Screening: 23/07/2026
Screening Outcome - Full EQIA recommended: No
