Pensions - Articles - CDC schemes could provide better outcomes for members


In responding to the DWP’s consultation on delivering collective defined contribution pension schemes which closed yesterday, XPS Pensions Group believe CDC schemes could provide better pension outcomes for members over traditional DC schemes.

 However, they would take choice away from members and present additional risks so it is critical they are well designed and managed.
 
 XPS Pensions Group believe there are three key areas the DWP and TPR need to consider in further detail to ensure the development of a successful CDC framework:
 
 1. Sustainability and resilience of CDC schemes for the future
 2. How to ensure fairness of outcomes between generations
 3. Member understanding and expectation
 
 Jacqui Woodward, Senior consultant at XPS Pensions Group says: “In our view it will be possible to develop an appropriate disclosure framework that adequately communicates CDC benefits to members. However, we would caution against underestimating the risks of CDC schemes in the rush to get them established. It is worth taking time to make sure that the new types of scheme can offer a genuine and safe alternative to members and we look forward to providing our input to further consultations on the detailed design of CDC arrangements.”
  

Back to Index


Similar News to this Story

Suggestion that State Pension Age should increase to 75
In response to the recent suggestion that the state pension age should increase to 75, Aegon calls for Government to confirm pension freedoms will be
GMP Equalisation soars to top of Pension Schemes To Do List
New figures from Equiniti reveal that GMP Equalisation has rocketed in importance for pension schemes following the landmark Lloyd’s case earlier this
XPS launch Competitive Tendering support for Trustees
In June 2019 the Competitions and Markets Authority (CMA) published its Order which implements the remedies that were set out in the CMA’s final repor

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.