Opperman confirms CDC proposals will be ‘set out in coming weeks’

The government will begin to set out detailed proposals on the introduction of collective defined contribution (CDC) pension schemes in “the coming weeks”, Pensions Minister Guy Opperman has confirmed.

Speaking at the Trade Union Congress (TUC) Pensions Conference, Opperman highlighted the government’s view that CDC schemes have the potential to improve outcomes for employers and employees “when they work together”.

Opperman’s comments come following the end of the government consultation on CDC schemes and stated that the government will aim to formally respond to the consultation in the coming weeks.

At the TUC conference, Opperman said: “CDC has the potential to open up new avenues for employers and their workforces to develop the best pension arrangements for their individual circumstances.

“The positive and constructive way that the Communication Workers Union (CWU) and Royal Mail have worked [on CDC schemes] is an important lesson to us all about how the best can be achieved.”

He also explained that the Department for Work and Pensions, Royal Mail and the CWU have been working collaboratively behind the scenes to make CDC schemes a reality in the UK pensions landscape.

Following the assurances from the Pensions Minister that the government were proceeding with the introduction of CDC pensions, East Renfrewshire MP Paul Masterton has decided to withdraw a ten-minute rule motion and private member’s bill aimed at triggering consideration of the matter in parliament.

Responses to the consultation have been mixed, but most respondents agree that the government must be careful that the proposed schemes were well designed and thought out or it could present additional risks for members.

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