This morning I’m off up the road to the Institute and Faculty of Actuaries who are hosting another session on CDC.

What’s happened since we last heard about CDC?

1. Royal Mail has announced it will be launching its new Collective Pension Scheme on October 10th,
2. The new Government has not mentioned CDC in its Pension Schemes Bill or its Call for Evidence on Pension Investments.
3. No new schemes have come forward
4. We have heard no more about the development of multi-employer or decumulation only DC schemes

In the meantime the Pensions Regulator has published guidance on pension superfunds and capital backed journey plans, offering the opportunity for DB schemes to run on either with no sponsor of co-sponsors.

The Pension Schemes Bill will require occupational DC schemes to offer a pension as well as a savings facility, though what this means  is still a long way from being fleshed out,

If CDC is to make headway in the current political climate, it must demonstrate that it is a means to deploy long term UK assets in its investment strategy. It must also demonstrate that it by comparison to DB and DC it offers longer durations for these strategies to work.

So far CDC has failed to win these arguments, it has got itself bogged down in pedantic discussions about member protection and allowed itself to chase down rabbit holes of others making,

CDC needs to make an appeal to the people who matter, the savers and break out of the narrow confines of the CDC debate which seem to be circumscribed by the legal and actuarial firms.

I cannot see it doing so , unless it can find a commercial sponsor prepared to treat CDC as a business with a certifiable business plan. So far, only TPT retirement solutions has shown much interest in doing this.

There must be advantage to the major master trusts in being able to offer full service pensions  -regulatory and commercial advantage. This morning , I look forward to hearing how those in Staples Inn are putting their best feet forward in the new political paradigm.