UK. New type of ‘mega-fund’ pension scheme gets green light from government
A new type of occupational pension scheme which pools workers’ investments into one super-sized pot has been given the green light by the government.
Pensions minister Guy Opperman has announced that collective defined contribution (CDC) pensions will be brought forward.
CDC schemes pool savers’ investments to create mega-funds, which aim to meet the future pension payouts of scheme members by spreading the investment risk across a variety of opportunities.
The government is now consulting on how such schemes, which are used in the Netherlands, could work in Britain.
The consultation applies to England, Wales and Scotland. It is envisaged that Northern Ireland will make corresponding legislation.
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