Arboreum has launched a multi-employer whole-of-life collective defined contribution (CDC) pension scheme that will provide members with a target-based income.

The firm is owned by Collective Pensions, which is majority owned by the Vestey and Timpson family businesses, and worked with Hymans Robertson and CMS on the scheme's development.

The Pensions Regulator (TPR) began accepting applications for multi-employer CDC schemes on 31 July 2026.

With Arboreum acting as proprietor, the scheme is designed to allow multiple, unrelated employers to participate through a single arrangement.

It said the arrangement offered an alternative to traditional defined contribution (DC) and defined benefit (DB) pension arrangements, with members to benefit from the collective pooling of investment and longevity risk, alongside the target-based income for life.

The scheme reduces the need for members to manage retirement savings and drawdown decisions alone.

Arboreum managing director, Adrian Boulding, commented: “For too long, employees have faced a choice between DC schemes that place most of the risk on individuals and DB pensions that are increasingly unavailable in the private sector.

“We’ve created a different way forward bringing people together in a collective, CDC, arrangement. With this new scheme we aim to provide a target-based income for life and help more workers achieve better retirement outcomes.”

Hymans Robertson partner, Paul Waters, added: “The launch of Arboreum is an important milestone for the development of CDC pensions in the UK.”

Waters said CDC could offer employers an alternative to traditional DB and DC provision by enabling collective risk-sharing and long-term investment.

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