Collective defined contribution (CDC) schemes are the "best means" for achieving the right balance between collective benefit security and individual freedom and choice, the Work and Pensions Committee (WPC) says.
In a report of its CDC inquiry, the committee said allowing CDC schemes to be established would provide potentially better outcomes than from standard defined contribution (DC) savings while also being an attractive alternative for employers to defined benefit (DB) schemes. It also urged the government to act quickly to amend the definition of money purchase benefits to include collective benefits as well as consult on a wide range of technical aspects. CDC could be the "next great pensions revolution" and help return the UK's pension system to "among the best pension systems in the w...
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