Collective Defined Contribution - First Actuarial https://firstactuarial.co.uk First Actuarial is a leading provider of pension services for defined benefit and defined contribution pension schemes – including auto-enrolment. We help trustees, employers and scheme members get the most out of their pensions. We are fair on fees and build long-term relationships with our clients. Thu, 21 Nov 2024 15:05:08 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0.4 CDC consultancy https://firstactuarial.co.uk/cdc/cdc-consultancy/ Tue, 01 Nov 2022 09:13:28 +0000 https://firstactuarial.co.uk/?post_type=cdc&p=13181

CDC consultancy

Home Our services CDC pensions CDC consultancy

CDC is finally here!

Defined Benefit (DB) pensions have given employers headaches in recent decades. Volatile financial markets and regulatory change have led to increased costs and risks for employers with DB schemes.

With Defined Contribution (DC), on the other hand, it’s the scheme members who get the headache. These individual-based saving pots make it impossible to work out exactly how much to contribute, resulting in unpredictable retirement income.

CDC is a fundamentally new type of pension scheme, offering advantages to employers and members alike:

  • No risk of cost increases for the employer
  • Higher and more reliable retirement income for the member, compared with DC.

How can First Actuarial help?

As unrivalled CDC specialists, First Actuarial should be your first port of call if you’re interested in finding out more.

We are offering a complimentary training session to any organisation interested in what CDC can offer. We will take you through the basics and you’ll have ample opportunity to discuss how it could work for you.

At First Actuarial, we pride ourselves on designing schemes to meet the individual needs of each client. Because CDC and the ideas that underpin it are new to the UK, design issues need particularly careful consideration.

If you decide to set up a CDC scheme, we’ll give you the support you need from beginning to end. We’ll design the scheme with full input from our actuarial and investment consultants. And we will then guide you through The Pensions Regulator’s authorisation process.

Register for a free CDC training session

We are offering a complimentary training session to any organisation interested in what CDC can offer. We’ll take you through the basics and give you ample opportunity to discuss how it could work for your organisation or scheme.

Book a CDC training session

Why First Actuarial?

First Actuarial is at the forefront of introducing CDC schemes in the UK.

When Royal Mail proposed replacing its DB pension fund with individual DC arrangements, the Communication Workers Union (CWU) enlisted the help of First Actuarial. We proposed the idea of CDC to Royal Mail and played an instrumental role in the successful negotiations that followed.

As a result, Royal Mail is now introducing the UK’s first CDC scheme, which will provide a career-average pension of 1/80 of pay for each year’s service.

Our pioneering role makes us the best people for you to work with on CDC. We will give you more choices of ideas and designs than any other consultancy.

Get in touch

Find out more about CDC and the complimentary training session we’re offering. Get in touch with one of our CDC specialists today.

I'd like to find out more about CDC

First Actuarial stood shoulder to shoulder with us, and together with Royal Mail we’ve helped make CDC happen. I can’t speak highly enough about First Actuarial – their people have been brilliant. The journey has been inspirational, nothing but a positive experience.

– Terry Pullinger, Deputy General Secretary (Postal), CWU

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]]> CDC pensions https://firstactuarial.co.uk/cdc/home/ Mon, 31 Oct 2022 16:01:05 +0000 https://firstactuarial.co.uk/?post_type=cdc&p=12908

CDC pensions

Home Our services CDC pensions

CDC pensions – a win-win for both employer and workforce

CDC, or Collective Defined Contribution, is a new way for employers to help staff save for their retirement. Introduced in the Pension Schemes Act 2021, CDC is an alternative pension scheme design that provides a fixed contribution for employers and a reliable income for life for members.

CDC is designed to provide its members with an income for life, as opposed to a savings account. Members can see the pension at retirement they are building up, and they cannot outlive their savings.

Register for a free CDC training session

Register for a free CDC training session We are offering a complimentary training session to any organisation interested in what CDC can offer. We’ll take you through the basics and give you ample opportunity to discuss how it could work for your organisation or scheme.

Book a CDC training session

Why CDC?

Risk-free pension provision for employers

CDC is an attractive alternative for employers keen to offer decent pensions without the risk of cost increases and large liabilities.

Reliable retirement income for members

CDC can give members a higher and more reliable retirement income than individual Defined Contribution pensions can guarantee.

Is CDC suitable for my organisation?

We believe CDC will benefit a wide range of organisations and schemes.

At this early stage, we believe that CDC schemes will be of particular interest to:

  • Larger employers (with more than 2,000 employees) keen to provide a higher income for members in retirement than individual DC pensions
  • Organisations with strong social responsibility values, such as cooperatives, mutuals, housing associations and other not for profits.

How does CDC work?

CDC bridges the gap between DC and DB. With no promised benefits, there are none of the deficits we see in many DB schemes. Crucially though, it delivers an income for life.

Because CDC pensions are not guaranteed and investments are collective, a CDC scheme is free to invest for a good return. They can also benefit from the economies of scale and risk pooling that DB enjoys. And incoming contributions can pay outgoing benefits directly.

Increased investment return means higher pensions at an affordable cost. Although there are no guarantees, members carry the risk collectively rather than individually.

All of this makes CDC pension outcomes much more reliable than individual DC.

Our CDC services

Find out more about our CDC consultancy if you’re interested in exploring the benefits of CDC

Find out more

First Actuarial joins forces with Royal Mail and CWU to introduce groundbreaking CDC pension scheme

The Communication Workers Union (CWU) enlisted the help of First Actuarial when Royal Mail proposed replacing its DC pension fund with individual DC arrangements. First Actuarial played an instrumental role in negotiations and came up with the innovative CDC proposal, which has now passed into law.

Read the case study

The post CDC pensions first appeared on First Actuarial.

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