The Department for Work and Pensions (DWP) is “opening to hearing about and having discussions” about the use of collective DC (CDC) at the decumulation stage.

Discussing at the PLSA annual conference the 59 responses to its June call for evidence about the support savers need when accessing their pension pots, DWP deputy director for automatic enrolment and defined contribution pension policy, Jo Gibson, said: “There was a lot of support for CDC at decumulation so we need to think about that.

"We are looking anyway at expanding CDC to multi-employers and we do need to think about whether decumulation-only CDC would work as well. We are opening to hearing about that and having discussions about that.”

She also reiterated that the DWP will consult on expanding CDC later this year – first announced by former Pensions Minister Guy Opperman in February.

As well as support for CDC at decumulation, Gibson noted that themes from the call for evidence responses included a desire for simplification of information and an alignment with the FCA’s work.

However, “there was recognition that just replicating what the FCA has done is not the answer”.

A ‘glidepath’ of information was also popular, “instead of having information about accumulation and decumulation, a glidepath through”, she added.

“Almost without exception” there was a lot of support that people do not consider their pension decision as ‘once and done’, so “so how do we help people have that flexibility within the [tax] structure we have got”, Gibson said.

The official government response to the call for evidence “will be a little while yet”, she clarified, as the DWP is still working through the responses.

Gibson said: “We have not had time to talk to our new Pensions Minister about this yet. We want to talk to him and determine what the policy options are with his steer. So watch this space.”

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