Michael Johnson: Why collective DC could undermine pensions freedom

A 'risk too far'

James Phillips
clock • 3 min read

Collective defined contribution (CDC) schemes risk creating "irreversible intergenerational injustice" and could undermine pension freedoms, Michael Johnson says.

Should CDC - an alternative to traditional workplace pension schemes be introduced there is a possibility that current and future employees could end up overpaying for the benefits of current pensioners, and the lack of "individual property rights" places the mooted scheme type "at odds" with pension freedoms. CDC schemes sit somewhere between traditional final salary arrangements and defined contribtion (DC) schemes and aim to better share risk between employers and employees.  In a damning report published on 30 July, the Centre for Policy Studies (CPS) research fellow and pension f...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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