16 January 2019
Collective Defined Contribution (CDC) consultation a 'welcome step' in opening up a third way for pensions
As the Department for Work and Pensions (DWP) consultation closes today/January 16, Smart Pension responds.
Darren Philp, Head of Policy at Smart Pension said: "We warmly welcome this consultation. For too long pensions have been polarised between defined contribution and defined benefit schemes, but this consultation genuinely opens up the way for the proper consideration and development of Collective DC schemes.
"While the focus of this particular consultation is quite narrow, and there are many complexities and details to work through, we hope that this consultation will be the first step in kick-starting the creation of CDC schemes in the UK. We can certainly see some appetite for CDC to be offered with a master trust environment in the future, particularly in helping to manage volatility around at retirement. It is a welcome step forward."
Commenting on the detail of the consulttion, Philp added: "Communications and expectations management around CDC will be absolutely crucial to ensure member understanding of what they are getting. This is an industry that hasn't always communicated clearly or effectively, and we need to ensure CDC schemes are at the vanguard of best practice."
Philp comments as the DWP's consultation period on CDC schemes closes on 16 January 2019.
Notes to editors
ABOUT SMART PENSION:
Smart Pension is a global savings technology platform provider. It is also one of the UK's largest providers of workplace pensions. Its award-winning master trust is MAF-accredited and overseen by independent professional trustees. It was co-founded in 2014 by Andrew Evans, CEO, and Will Wynne, MD, and launched in May 2015. Europe's second largest asset manager Legal & General Investment Management (LGIM) took a minority stake in the digital pension platform in 2016, part of a move by LGIM to invest in high-achieving, innovative technology that has a positive impact on the wider economy. In June 2017 it was named Fintech Innovation of the Year and overall winner in the Digital Leaders 100 awards, in June 2018 it was named as Master Trust of the Year at the European Pension Awards. www.AutoEnrolment.co.uk