Collective DC - Have your voice heard |
Collective DC (CDC) plans are in the news thanks to the DWP's latest consultation on Defined Ambition pensions.
As well as offering cost certainty to employers, CDC plans can provide higher and more predictable levels of pension income for members than conventional defined contribution schemes while costing no more to the employer. The flipside of having these higher, more predictable benefits is that the benefits are only "targeted", not guaranteed, as in extreme circumstances, benefits may need to be reduced in order to restore full funding.
The DWP have made it clear that in order for CDC plans to be given the green light in the UK, it needs to see evidence of industry buy in. Aon Hewitt would therefore encourage you to complete your own response to the consultation, but as you would expect, we will be responding to the DWP's consultation document ourselves. And as part of our consultation response we would like to include views of companies that will not be able to find the time to submit their own consultation response.
So, if you would like to take advantage of this easy way to have your voice heard in this consultation, please answer our quick survey (no longer than 10 minutes of your time) by 13th December to have your views passed on to Steve Webb.
As well as offering cost certainty to employers, CDC plans can provide higher and more predictable levels of pension income for members than conventional defined contribution schemes while costing no more to the employer. The flipside of having these higher, more predictable benefits is that the benefits are only "targeted", not guaranteed, as in extreme circumstances, benefits may need to be reduced in order to restore full funding.
The DWP have made it clear that in order for CDC plans to be given the green light in the UK, it needs to see evidence of industry buy in. Aon Hewitt would therefore encourage you to complete your own response to the consultation, but as you would expect, we will be responding to the DWP's consultation document ourselves. And as part of our consultation response we would like to include views of companies that will not be able to find the time to submit their own consultation response.
So, if you would like to take advantage of this easy way to have your voice heard in this consultation, please answer our quick survey (no longer than 10 minutes of your time) by 13th December to have your views passed on to Steve Webb.