CDC pensions
The Pensions Minister announced this week that the Government intends to launch a formal consultation on Collective Defined Contribution (CDC) pensions in the autumn.
Royal Mail and the CWU welcomed the news. It marks an important step forward in enabling us to offer a CDC scheme for Royal Mail employees as soon as possible.
The consultation follows the Work & Pensions Select Committee’s recommendation in July that Government allows CDC pensions.
The Pensions Minister Guy Opperman said: “Collective forms of pension saving offer interesting new possibilities, and the Department is currently working through proposals for the first Collective Defined Contribution schemes in the UK. We intend to launch a formal consultation in the autumn.”
CDC debate in Parliament
In another CDC development, on 17 October there will be a debate in Parliament on CDC pensions, led by Paul Masterton MP.
Next steps for Royal Mail and CWU
• Royal Mail and CWU will make formal submissions to the Government consultation, outlining why we think CDC is right for Royal Mail and our people.
• Our detailed work continues with the Department for Work and Pensions on the legislative and regulatory changes needed for our CDC scheme. Detailed work also continues on scheme design.
• We want to be able to introduce a CDC scheme as soon as possible. Royal Mail and CWU remain committed to working together on our historic journey to introduce the UK’s first ever CDC scheme.
