Collective Defined Contribution pension schemes in the UK
Seminar in Insurance and Economics
SPEAKER: Catherine Donnelly (Heriot-Watt University).
TITLE: Collective Defined Contribution pension schemes in the UK.
ABSTRACT: The first Collective Defined Contribution (CDC) pension scheme in the UK launched in October 2024. Understanding this first scheme, the Royal Mail Collective Pension Plan, is important to understanding the likely direction of travel for CDC schemes in the UK, as its journey to existence has driven the legislation and regulations around these new schemes. I will outline the workings of the Royal Mail Collective Pension Plan, and show how it shares risk among its members. Three main types of member cross-subsidies are identified. The old adage “there is no such thing as a free lunch” may be mentioned.