The Friday Takeaway: A brighter collective future?
In years to come, will we look back on 7 October 2024 as a landmark day for the pensions industry??
Hopefully, at least for members of the new Royal Mail Collective Pension Plan , it will be remembered as a giant step forward for retirement security and adequacy of income. The Church of England and TPT Retirement Solutions – between them responsible for almost 500,000 members – could soon follow suit.?
With a government consultation now open regarding rules for multi-employer collective defined contribution (CDC) schemes, the positive effects of this ‘third way’ for pension saving may soon extend to many more people.
“People work hard to put money aside for their pension with every pay cheque. This significant innovation will offer a more predictable income and greater finance security for future pensioners." - Emma Reynolds, pensions minister
WTW’s report, published on Wednesday , set out a range of ways in which CDC and similar approaches can be used to enhance traditional defined contribution schemes, adapt defined benefit plans, or otherwise improve retirement outcomes through some element of risk sharing.?
As with anything in our overly complex industry, its success with members and beneficiaries will rest with how it is communicated. Savers must understand the limits of any guarantees or underpins, and to what extent their income will vary.?
Speaking of the future, next week Pensions Expert will be at the Pensions and Lifetime Savings Association 's Annual Conference in Liverpool . Please stop by our stand at location F17 to say hello to my DG Publishing colleagues Jonathan Trinder and Keara Stapleton (and me, of course).?
For those of you who can’t make it, please look out for our extensive coverage of the conference, which will begin with a preview on Monday.?
In the meantime, I hope you all have a great weekend.??
Story of the week: Lifetime Savings Initiative proposes long and short term savings plans
This week, amid all the CDC excitement, Schroders and Pensions Management Institute (PMI) published a landmark report from their Lifetime Savings Initiative joint project. After extensive research, the initiative recommended a new National Short Term Savings Plan to help people save for a 'rainy day' fund, and a long-term fund to support saving for a house deposit.
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Appointments: Rory Murphy to step down from MNOPF
Mike Jess is to take over from Rory Murphy (pictured) as chair of the Merchant Navy Officers' Pension Fund ( MNOPF Trustees Ltd ), plus new faces at Standard Life UK 's independent governance committee and South Yorkshire Pensions Authority
Delegate passes available for Private & Public Pensions Summit
There is still time to register for a delegate pass for the Public & Private Pensions Summit taking place at Pennyhill Park in Surrey on 27 and 28 November.
The agenda will cover topics from sustainable and net zero investing to infrastructure and direct lending, and from the outlook for the UK economy to administration, dashboards and the future of the pension system.