Collective Defined Contribution (CDC)

What is CDC?

CDC is a new style of pension scheme designed to bridge the gap between Defined Benefit (DB) and Defined Contribution (DC) schemes. It has the potential to offer members a higher and more predictable retirement income than DC and take-out the risk of unexpected pension-related costs for employers compared to DB.

How it works

Unlike a DC scheme, a CDC scheme provides a whole-life pension to members. The contributions employers and members pay are fixed and pooled into a collective fund. By pooling investment and life expectancy risk amongst the membership, CDC is expected to generate higher returns than an individual DC scheme resulting in higher expected benefits. Annual increases to benefits depend on the performance of the scheme. This removes the possibility of the employer having to plug a funding gap.

The benefits of CDC

CDC - the best of both worlds

Download our flyer below to see how CDC is bridging the gap between Defined Benefit and Defined Contribution pensions.

years of experience in the pensions sector
of assets under management (as at September 2022)
members across the UK

Contact our team

Ask a question, book a call with us or learn more about CDC.  

We continue to believe that Collective Defined Contribution (CDC) will have an integral role in the future of pensions in this country and want to ensure as many savers as possible can take advantage of the benefits of CDC.

Laura Trott

UK Pensions Minister


Although CDC has been operating in other countries for a few years, it was only introduced to the UK as part of the Pension Schemes Act in 2021. The Department for Workplace Pensions  started looking to extend CDC to multi-employer arrangements in 2023. As a result, we’re actively working through the considerations of a multi-employer CDC scheme. We’d like to hear from both new and existing employers as we look to develop our CDC offering. See what our Employer & Strategic Partnerships Director Andy O’Regan thinks about CDC using the link below.

  • Pensions Age Awards 2023 Winner. Master Trust offering of the year
  • Professional Pensions UK Pensions Awards 2023 Winner. DB Master Trust/Consolidator of the year. TPT Retirement Solutions
  • UK Pensions Awards Winner 2023 - Pensions Communication Initiative of the Year
  • European Pensions Awards 2023 Winner. European Pensions innovation award (Pension Fund)

Get in touch

Leave your details and we’ll be in touch, or drop us a line to tell us about your requirements and we’ll see how we can help. 

  • Andy O'Regan

    Employer & Strategic Partnerships Director

  • Paul Eagles

    Senior Professional Services Manager

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