A final evidence session on collective defined contribution (CDC) pensions is today being held by the Work and Pensions Committee.
As well as being seen as a way to provide pension savers with a more reliable income during retirement, it’s thought that CDC also minimise the risks associated with defined benefit schemes.
Whilst in the UK the legislative framework for CDC is yet to be implemented, CDC pensions are available in Denmark and the Netherlands. Currently, CWU and the Royal Mail are looking to develop a way to give effect to a deal they’ve recently struck to set up a CDC plan; they are in talks with the Department of Work and Pensions with a view to achieving this.
Set to take place today, the committee’s session will include:
- The experience of CDC’s in the Netherlands
- The UK retirement saving culture and the demand for CDC pensions
- Looking at whether people could transfer between pension schemes
- Looking at if CDC pensions really would provide better value for savers
- The necessary legislative framework to support the introduction of CDCs
- The governance of CDC schemes
