The following Pensions guidance note Produced in partnership with Chris Brown and Andrew Walls of Burges Salmon LLP provides comprehensive and up to date legal information covering:
ARCHIVED: This archived Practice Note provides information on the legal framework which had been put in place for collective defined contribution (CDC) schemes under the Pension Schemes Act 2015. It is not maintained and is for background information only. For more information on the current legal framework for CDC schemes, see Practice Note: Collective defined contribution (CDC) schemes.
Collective defined contribution (CDC) schemes are a type of defined contribution scheme in which the assets are pooled on behalf of members without members having any interest in particular assets.
They are being promoted by the government as part of its reforms to reshape workplace pensions.
This Practice Note explains a little of how they work, comments on the advantages and disadvantages associated with them and summarises the government's proposed legislative reform to facilitate CDC schemes in the UK.
One of the main aims of a CDC scheme is to supply funds sufficient to provide a targeted income and to provide at least some inflation proofing for it. An employer makes fixed contributions to the scheme but with no liability to fund a certain level of benefits. Members are informed of their target income in retirement based (for example) on a percentage of their career average revalued earnings. Critically, this target
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234