Commentary

The launch of Royal Mail’s CDC Scheme

07 Oct 2024

Commenting on the launch of Royal Mail’s CDC Scheme, Paul Waters, Head of DC, Hymans Robertson says:

“The launch of the Royal Mail CDC scheme is a highly significant milestone for the pensions industry. Delivering a brand-new type of pension scheme has taken a sustained effort from everyone involved, innovation on this scale is hard. CDC provides great value by delivering higher pensions for lots of savers alongside increased certainty their pension won’t run out in retirement, which is desperately needed. 

“While celebrating today’s achievement, however, it’s important to recognise that the launch of the Royal Mail CDC scheme is just the beginning. The Royal Mail’s scheme was designed around specific objectives and the way it’s been set up will not be the best path for all schemes thinking about CDC. Other employers will have their own individual objectives and profile of members, which means a range of different types of design will be needed to cater appropriately for different groups. As an industry we need to develop a broad range of DC risk sharing options to deliver the greatest benefit to future members.”

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