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

State pension age review: Govt launches call for evidence

State pension age review: Govt launches call for evidence

UK faces long-term demographic pressures

Jenna Brown
clock 18 August 2025 • 2 min read
'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

After PensionBee calls for a legally enforceable transfer guarantee

Sahar Nazir
clock 18 August 2025 • 2 min read
FCA to crack down on life insurers with 'slower' pension transfer service times

FCA to crack down on life insurers with 'slower' pension transfer service times

Regulator warns slow pension transfers risk harming client outcomes

Isabel Baxter
clock 15 August 2025 • 5 min read