Released 19 July 2021
The Department for Work and Pensions (DWP) has published details of Collective Defined Contribution (CDC) pension schemes – a new type of scheme, which should offer savers an income in retirement and also ensure that costs are predictable for employers.
Broadly, CDCs will work by both employers and employees contributing to a collective fund, and from this fund individual retirement incomes are drawn.
The draft legislation for the new scheme is currently subject to consultation, which runs until 31 August 2021.
Further details, including a link to the consultation document, can be found at https://www.gov.uk/government/consultations/the-occupational-pension-schemes-collective-money-purchase-schemes-regulations-2021.
See also the DWP press release (19 July 2021): A new way forward for posties and others who have workplace pensions.