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

Sackers launch guide for trustees on pension transcations
Sackers have published its latest guide for trustees on buy-ins, buy-outs and longevity transactions. This guide is focused on supporting pension sche
Pensions Minister echoes climate warnings in Westminster
MPs from across the House of Commons have debated climate change and pensions. Pensions Minister Guy Opperman responded. Earlier he spoke of ‘kickstar
New tools allow pension schemes to deliver greater value
New tools helping pension schemes deliver greater value for money for millions of savers have been launched today (21 May) by the Cost Transparency In

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


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