The Pensions Policy Institute (PPI) has published ‘What is CDC and how might it work in the UK?’, a report which explores the defining features of Collective Defined Contribution (CDC) schemes, as well as the potential benefits they may offer and the hurdles they are likely to face in design and operation.
CDC schemes could offer a middle ground between Defined Contribution (DC) and Defined Benefit (DB), providing members with greater certainty about the retirement outcomes they will achieve than would be possible in a DC scheme, while providing greater certainty about costs for employers than a DB scheme.
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