Pensions Regulator to finalise CDC code by 1 August

[RobertT]

https://www.pensionsage.com/pa/TPR-to-f ... tinues.php

The Pensions Regulator (TPR) has confirmed that it is on track to finalise the collective defined contribution (CDC) code of practice by 1 August 2022, while further work on the issue of pension scams will be published "in due course".

Speaking at the Pensions Age Northern Conference 2022, TPR lead investment consultant, Fred Berry, confirmed that TPR has been analysing industry feedback following its consultation on the draft code of practice earlier this year.

Industry experts previously urged TPR to publish a finalised code to be published after regulations for CDC schemes were introduced to parliament, to allow employers considering this option to prepare ahead of applications opening in August.

Berry confirmed that TPR is working to a deadline of "no later than the first of August to get the code finalised and in place", which is expected to allow Royal Mail to meet its commitments to launch a collective scheme by the end of the year.

He also suggested that there is potential for the CDC framework to develop "quite quickly", echoing the Pensions Minster's ambition to potentially extend the CDC framework to include other types of pension schemes.

“Having a CDC code in place for single and connected multi-employer schemes will be a benchmark for future entrants into these markets," he stated.

"We also expect that the market framework for CDC schemes could develop quite quickly and, as appropriate, we will look to update the code to include non-related multi-employer schemes and further commercialisation models as necessary.”

[paul gallon]

Robert could you please advise: If I was to retire this year at 59 would I lose 5 percent per year as regarding the DBCBS? or do I get to keep the full amount and is it taxable? Thanks all help is greatly appreciated

[yubin282]

Robert could you please advise: If I was to retire this year at 59 would I lose 5 percent per year as regarding the DBCBS? or do I get to keep the full amount and is it taxable? Thanks all help is greatly appreciated

There's been almost zero information about the scheme, and so far it sounds absolutely terrible for those that can't even think about retirement for at least 20 years.

[RobertT]

Robert could you please advise: If I was to retire this year at 59 would I lose 5 percent per year as regarding the DBCBS? or do I get to keep the full amount and is it taxable? Thanks all help is greatly appreciated

Based on the limited info you've provided:

The DBCBS is predominantly attached to NRA65 benefits, but you can take some of it with NRA60 too.

It says on the RMPP website there are reductions to the DBCBS for taking it early, but posters on this forum suggest it isn't as high as 5% per year.
Nobody seems to know the exact reductions, if there are any at all!

How much tax you might pay on it will depend on which section you're in, how you choose to access the money and any other income you may have.


*The DBCBS has got absolutely nothing to do with CDC!

[RobertT]

There's been almost zero information about the scheme, and so far it sounds absolutely terrible for those that can't even think about retirement for at least 20 years.

There's quite a lot of info on CDC here: https://www.myroyalmail.com/collective-plan, plus there's lots of articles on the pros and cons of CDC to be found on t'internet.

[yubin282]

There's been almost zero information about the scheme, and so far it sounds absolutely terrible for those that can't even think about retirement for at least 20 years.

There's quite a lot of info on CDC here: https://www.myroyalmail.com/collective-plan, plus there's lots of articles on the pros and cons of CDC to be found on t'internet.

I've read that, but there's nothing for those that don't wanna work past age 67+

[heapsy]

CWU should be ashamed, delivery staff thrown to the wolves with this, nobody will make it to 67.

[RobertT]

There's been almost zero information about the scheme, and so far it sounds absolutely terrible for those that can't even think about retirement for at least 20 years.

There's quite a lot of info on CDC here: https://www.myroyalmail.com/collective-plan, plus there's lots of articles on the pros and cons of CDC to be found on t'internet.

I've read that, but there's nothing for those that don't wanna work past age 67+

What do you want to see for those who don't want to work past 67?

[yubin282]

There's been almost zero information about the scheme, and so far it sounds absolutely terrible for those that can't even think about retirement for at least 20 years.

There's quite a lot of info on CDC here: https://www.myroyalmail.com/collective-plan, plus there's lots of articles on the pros and cons of CDC to be found on t'internet.

I've read that, but there's nothing for those that don't wanna work past age 67+

What do you want to see for those who don't want to work past 67?

Realistically it'll be 70+ for me.

It would be nice to have some info for those who like to retire around 60.

There's no mention of that and quite honestly the scheme sounds pretty awful.

Also it mentions being able to pay an extra 1% (on top of 6%) but it sounds like that will be lost of you take it pre state pension age.

[Woody Guthrie]

CWU should be ashamed, delivery staff thrown to the wolves with this, nobody will make it to 67.

The idea that the current or even worse future delivery model is suitable for anyone over 60 is laughable but not funny.

It's the elephant in the room that the business and the union don't want to talk about.

Every office will shortly need a full time ill health retirement manager.

[RobertT]

Realistically it'll be 70+ for me.

It would be nice to have some info for those who like to retire around 60.

There's no mention of that and quite honestly the scheme sounds pretty awful.

Also it mentions being able to pay an extra 1% (on top of 6%) but it sounds like that will be lost of you take it pre state pension age.

There will be early payment reductions for taking the pension before the NRA of 67, and the percentages will be worked out by the scheme actuaries.
There will also be the option of taking a transfer value and moving your share to another pension arrangement.

No specifics are known at this time, which I think is understandable as the scheme doesn't exist yet.

The extra 1%, matched by RM, will be going into the lump sum element, the DBLSS. The idea is that extra contribution will enable you to get roughly the same lump sum at 65, factoring in early payment reductions, as you would have got at 67.

The CDC(RMCPP) scheme will have an NRA of 67, so is not connected to state pension age, which will vary with the individual.