CDC schemes 'must be explicit about potential risks', PPI says

Warning from the Pensions Policy Institute

Hope William-Smith
clock • 3 min read

Collective defined contribution (CDC) schemes must clearly communicate to members how the model may put their income and benefits at risk of reduction, the Pensions Policy Institute (PPI) says.

In a briefing note published yesterday (14 June) the institute compared CDC models in the Netherlands, Denmark and Canada with plans for the introduction of CDC in the UK from this August, including a particular focus on the need for transparent and comprehensive member communications. The PPI warned that "the extent to which communications are effective" within CDC schemes was likely to inform the level of trusts members hold within the scheme overall. Senior policy researcher Lauren Wilkinson said: "Because of the variable nature of benefits within CDC schemes, clear communication a...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pension engagement only way to cut 'retirement anxiety'

Pension engagement only way to cut 'retirement anxiety'

Verona Kenny says industry has ‘moral duty’ to push engagement

Jenna Brown
clock 23 April 2025 • 3 min read
L&G becomes first pension provider to complete dashboards ecosystem connection

L&G becomes first pension provider to complete dashboards ecosystem connection

Provider finalised its connection to the ecosystem today

Holly Roach
clock 17 April 2025 • 1 min read
How public sector pensions impact divorce proceedings

How public sector pensions impact divorce proceedings

'The ripple effects of the McCloud Remedy continue to be felt in divorce proceedings'

Vanessa Gardiner
clock 15 April 2025 • 5 min read