Discussion paper on key elements of the Scale Policy
This discussion paper seeks industry views on key elements of the Defined Contribution (DC) pension scheme scale policy as we develop the detailed design for regulations.
Applies to England, Scotland and Wales
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The Pension Schemes Act 2026 sets out the Scale policy and the scale thresholds that will be introduced for DC multi-employer schemes from 2030.
During the passage of the Act, Government committed to engaging with industry on the detail of the Scale policy, and it is important that we take the time to deliver on this commitment.
This discussion paper focuses on the key elements of how Scale will be assessed - the Main Scale Default Arrangement, the Common Investment Strategy and the connections that will be allowed between schemes to meet the scale thresholds.
In particular, we are interested in the operation of default arrangements and investment strategies in multi-employer defined contribution schemes and the connections between schemes that exist within a provider’s corporate group. The responses to this discussion paper and other stakeholder engagement will help inform the Department for Work and Pension’s development of the detailed regulations. We will consult on draft regulations in 2027, in line with the published workplace pensions reform roadmap.