Collective Defined Contribution

Types of pensions
Recent pension developments

A new type of pension scheme currently undergoing consultation.

It contains elements of both Defined Contribution (DC) and Defined Benefit (DB) schemes in that contributions are pooled and invested collectively with a view to attaining a target income (though not fixed as in DB schemes) at retirement for scheme members. Rather than placing all risk on either employer or employee, these are a form of risk-sharing scheme.

They are popular in countries such as the Netherlands and Canada but not currently active in the UK.

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