Extending Opportunities for Collective Defined Contribution Pension Schemes: PLSA response

This is the PLSA’s response to DWP’s consultation aiming to extend the existing regime for single employer Collective DC schemes to multi-employer, Master Trust and decumulation-only models.

CDC has the potential to enhance pension benefits for savers through pooling of both investment and mortality risk, and so the extension of the regime will make these benefits available to more savers. Our members are interested in both whole-life and decumulation-only models, as well as commercial and non-commercial sectoral schemes for savers in accumulation, so we will continue to work with officials and regulators as they seek to overcome some of the challenges CDC raises, such as achieving scale, establishing fair benefit and increase levels and ensuring sufficient member and employer understanding.