Pensions minister confirms commitment to CDC schemes

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Pensions minister confirms commitment to CDC schemes

By Stephanie Hawthorne | February 13, 2019

On the go: The minister for pensions and financial inclusion, Guy Opperman, has confirmed that the government intends to proceed with legislation to implement collective defined contribution schemes.

The impetus for the introduction of CDC has come from the Royal Mail, which says it hopes to provide CDC as a new scheme for its 141,000 employees.

Following a consultation on CDC pensions, the minister has stated that he will aim to formally respond to that consultation in a matter of weeks.

Speaking at the Trades Union Congress Pensions Conference, Opperman said CDC schemes could provide good outcomes for employers and employees when they work together, and welcomed the TUC’s constructive response to the consultation.

He said: “CDC has the potential to open up new avenues for employers and their workforces to develop the best pension arrangements for their individual circumstances."

Opperman added: “The positive and constructive way that the Communication Workers Union and Royal Mail have worked [on CDC schemes] is an important lesson to us all about how the best can be achieved.”

The pensions minister also highlighted the collaborative work on CDC pensions going on behind the scenes between the Department for Work and Pensions, Royal Mail, and the CWU to make the proposed schemes a reality.