Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Collective Defined Contribution definition

What does Collective Defined Contribution mean? A collective defined contribution (CDC) scheme is a workplace pension design where contributions are fixed, but the retirement income is a targeted (not guaranteed) amount, with increases aimed to keep pace with inflation but capable of being reduced or increased to reflect funding. Investment and longevity risks are pooled across members, and employer liability is limited to agreed contributions (unlike defined benefit schemes). In Great Britain (England & Wales and Scotland), CDC is a statutory scheme type known in legislation as a “collective money purchase” scheme under the Pension Schemes Act 2021 and related regulations. Such schemes require authorisation...

CDC schemes under the Pension Schemes Act 2021: authorisation, supervision, benefit adjustment, transfers and disclosures, with multi-employer extension, HMRC registration changes and Retirement CDC (decumulation-only) proposals

Published by a LexisNexis Pensions expert

Practice notes

FORTHCOMING CHANGE:

On 23 October 2025, the DWP opened a consultation on proposals for ‘Retirement CDC schemes’, a fresh pension design aimed solely at retired members. Under the plans, savers with DC pots could, at retirement, move their funds into a collective pool that pays trustee-run lifetime income, recalibrated each year in line with investment outcomes and the health of the scheme. These Retirement CDC arrangements would sit as sections within Master Trusts or in unconnected multi-employer vehicles. For more detail, see: Decumulation-only CDC schemes, below. For legislative consistency, the Pension Schemes Act 2021 (PSA 2021) uses ‘collective money purchase’ for what are commonly called ‘collective defined contribution’ (CDC) schemes. This Practice Note treats the two labels as interchangeable.

Why develop a CDC framework?

CDC works by sharing risk across a broad membership, allowing schemes to aim for (though not legally guarantee) a target pension; this relieves employers or trustees of uncapped obligations and spares individuals the burden of turning their pot into a lasting income. Such models are well-established in the Netherlands, and Royal Mail introduced the UK’s first CDC scheme in October...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...