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 ...

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

Many savers fear smaller pension pots after salary sacrifice reforms

Many savers fear smaller pension pots after salary sacrifice reforms

Two-thirds think changes will mean paying more National Insurance

Jasmine Urquhart
clock 08 January 2026 • 2 min read
Evolution of pension recommendations and how 2026 may influence change

Evolution of pension recommendations and how 2026 may influence change

Next year could be the start of something big

Richard Hulbert
clock 06 January 2026 • 4 min read
Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read