DWP gives green light to Royal Mail CDC scheme

Will extend to wider models

Kim Kaveh
clock • 4 min read

Collective defined contribution (CDC) provision will be introduced slowly, starting specifically with a Royal Mail scheme and then be rolled out more widely, the government has confirmed.

In a consultation response, published today (18 March), the Department for Work and Pensions (DWP) said this is a "very complex area of legislation" and that "we need to be sure that we have the detail right for the Royal Mail scheme before we extend the provision to other, arguably more riskier, models". The DWP confirmed that it will introduce the legislation - which was put on hold in 2015 and revived by Royal Mail and its union - "when parliamentary time allows". The government intends to extend the legislation to master trusts, mutual insurers and multi-employer schemes once the ...

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