Application fees for CDC scheme authorisation

This guidance explains the fees that will apply for authorisation of a collective defined contribution (CDC) scheme or a CDC section of a scheme. It also explains how we assess fees for additional CDC sections, whether they are included in the initial application or added after authorisation.

This guidance should be read alongside the Applying for authorisation module in our CDC code of practice.

Published: 31 July 2026

The standard application fee

The standard application fee set out in legislation for authorisation of a CDC scheme is £77,000. This will apply to:

a standalone CDC scheme
a CDC section of an existing non-CDC scheme
the primary section of a CDC scheme with multiple sections

Assessing scheme structure before application

We expect that most CDC schemes will have a single section. Where this is not the case, those applying for authorisation of a scheme will need to choose and identify which section will be the ‘primary’ CDC section.

A scheme or section authorised as a single employer or connected multi-employer CDC scheme (or section) will not be able to become an unconnected multi-employer CDC scheme or section after it has started operating (and vice versa) without submitting another application. You should therefore give careful thought to the type of authorisation that is required before making an application.

To avoid unnecessary work, delays, and additional fees, trustees need to clearly understand what sort of scheme application they are making and what is needed for the assessment to progress. Prospective applicants should contact our innovation team ahead of making their application to discuss the features of their scheme.

Application for one or more new sections of an existing scheme

Before the trustees of an authorised scheme apply for the authorisation of a new section, they must first submit a comparison report mapping out how the new section differs from any other section that has already been authorised. To avoid duplication, the comparison report may directly reference relevant materials elsewhere, such as in the viability report.

If it is the first new section to be added, then the comparison should be made against the existing section. Any subsequent sections added should be compared to all other sections, whether authorisation is sought separately or jointly.

We will rely on the comparison report to assess the level of duplication between sections and the level of original material we need to assess. The greater the level of duplication between sections, the less assessment time is likely to be needed and the lower the fee is likely to be.

The fee could also be sensitive to economies of scale. For example, where the sections are identical or very similar and/or submitted simultaneously, we may only have to go through our internal assessment processes once.

When a new section is similar to an operational section, we may be confident about the additional assessment necessary because of the lessons we have learned from supervising the operational scheme.

Application for more than one section at initial application

The same principles apply when authorisation is sought at the outset for a multiple section scheme. Trustees will be expected to submit a comparison report with their application so we can assess the level of duplication across sections and set a non-negotiable fee. In the lead up to submitting a first application, we would expect any dialogue with us to cover the structure of the scheme and the relationship between sections.

If the primary section is not successfully authorised, the trustees may nominate another section to become the primary section. The fee for assessing any resubmitted section will be calculated using the same process. A new comparison report must be submitted for a new application fee to be set.

If features of a proposed section differ from other sections to a significant degree, we may need to carry out a more detailed assessment. This means the fee for that section is likely to be higher and may be closer to the standard application fee.

Setting the fee for additional sections

A non-negotiable fee will apply to any additional CDC section, whether included in the initial application or added after authorisation.

After assessing the comparison report, we will set the fee based on the resources needed to assess the application. We are likely to charge a flat fee of £25,000 where sections closely resemble each other or already authorised sections. This reflects the amount of work involved but should not deter legitimate scheme initiatives.

Where we consider that authorisation of a new section is likely to be more complicated or time-consuming we may set a higher fee. This will be calculated on a cost recovery basis that will not exceed the standard fee.

Paying the fee

All fees must be paid by BACS transfer before an application can be considered complete. We will only assess a complete application. If an application is withdrawn during assessment and then resubmitted, the resubmission will be treated as a new application, and the full fee must be paid for it.