March 2022
29Mar

UK. Opperman calls for industry input on CDC expansion

Pensions minister Guy Opperman has called on the industry to work with government on expanding the nascent collective defined contribution market, though experts have previously warned that draft regulations are too strict to allow for real growth in the sector. Speaking at a Royal Society of Arts CDC forum on March 28, Opperman expanded on the draft regulations due to come into force on August 1, and expressed his support for the expansion of CDC beyond the single-employer arrangements currently...

March 29, 2022
News, , ,
Read more...

February 2022
21Feb

UK. Royal Mail moves ahead with CDC scheme

Royal Mail, the Communication Workers Union and Unite have agreed to progress plans to introduce a new collective defined contribution scheme, the first of its type in the country, following a consultation with members. Royal Mail launched its consultation in September 2021, in which it laid out plans for the new Royal Mail Collective Pension Plan. Under a CDC arrangement, members pool investment and longevity risk and contribution rates for employers and employees are set in advance. The group finalised and confirmed...

February 21, 2022
News, Slider, , ,
Read more...

April 2019

22Apr

Fair Pensions

By Ilja Boelaars (University of Chicago) & Dirk Broeders (De Nederlandsche Bank; Maastricht University) This paper examines the allocation of market risk in a general class of collective pension arrangements: Collective Defined Contribution (CDC) schemes. In a CDC scheme participants collectively share funding risk through benefit level adjustments. There is a concern that, if not well designed, CDC schemes are unfair and will lead to an unintended redistribution of wealth between participants and, in particular, between generations. We define a...

April 22, 2019
Articles, Pension design, Slider-Left, , ,
Read more...