LONDON, 11 February 2021 – Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, has said that the granting of Royal Assent to the Pension Schemes Bill today, marks a significant moment in the development of Collective Defined Contribution (CDC) plans, as well as paving the way to a broader pensions landscape for the UK’s pension savers.
Matthew Arends, partner and head of UK Retirement Policy for Aon, said:
“This has been a lengthy but very worthwhile process. It’s one in which Aon has been very active from the start, so we take particular pleasure in today’s news.
“This legislation brings CDC schemes into reality and with the increasing decline in the private sector of defined benefit schemes, it offers the possibility for DC savers to achieve an income for life from their DC savings in both an efficient way and without having to make complex investment decisions.”
Matthew Arends continued:
“Sitting alongside familiar DB and DC benefit designs, CDC can now offer something different and welcome, so we are approaching an exciting time.
“This new legislation opens up the opportunity to enable single employer CDC plans. But it shouldn’t stop there – the path should now be open for Government and the Department for Work & Pensions to move ahead at pace with the second phase of enabling legislation. This would provide wider-reaching options, making CDC accessible in a variety of ways - potentially including CDC master trusts, decumulation-only CDC platforms, and industry-wide or multi-employer CDC plans.”
Notes to editors
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