19 November 2024
Commenting on the response to the Department for Work and Pensions (DWP) consultation on regulations to extend Collective Defined Contribution (CDC) schemes in the UK, Simon Eagle, Chair of the IFoA Pensions CDC and Collective Benefit Schemes Working Party, said:
“The proposals put forward by DWP are a big step in the advancement of CDC schemes. By allowing providers to set up multi-employer or master trusts, CDC schemes make it easier for employers to provide CDC pensions to their employees.
“The IFoA’s view is that current pension provision in the UK, most of which is defined contribution (DC), is in most cases not providing adequate solutions for all pension savers. CDC schemes are a viable alternative which may offer a better deal for savers, and this consultation makes them a tangible option for employers.
“The draft regulations on the whole provide what is needed, and the IFoA is engaging with DWP on a few specific areas to ensure the regulations are robust before finalised. We look forward to working with DWP further on exploring the opportunities that CDC offers, including using it as a post-retirement option for guaranteed income.”
~ENDS~
Read IFoA’s consultation response
Hannah Patmore, Communications Manager, IFoA
Tel: 07519106714
Email: hannah.patmore@actuaries.org.uk
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