Collective Defined Contribution 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

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.

Why CDC?

Unlike Defined Benefit and Defined Contribution schemes, CDC offers advantages to both employers and scheme members.

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.

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

Our CDC services

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

First Actuarial case studies

Royal Mail

The Communication Workers Union (CWU) enlisted the help of First Actuarial when Royal Mail proposed replacing its Defined Benefit pension fund with individual Defined Contribution arrangements.

“I can’t speak highly enough about First Actuarial – their people have been brilliant. The journey has been inspirational, nothing but a positive experience.”


Watford Community Housing

The risk of a significant cessation debt hung over Watford Community Housing (WCH) as the number of its employees participating in the Local Government Pension Scheme (LGPS) diminished. WCH asked First Actuarial to find an approach to mitigate this risk.

"First Actuarial are very approachable. They’re good at helping managers and Board members digest a very complex and difficult area, and they’ve also been proactive in helping us shape an innovative solution."



First Actuarial partnered with Bromford to communicate extensive pension scheme changes and improve financial wellbeing, delivering more than 40 group presentations to 1,200 colleagues.

"Working with First Actuarial was a highly professional partnership that had a positive effect on our colleagues. We received great feedback on both the group and one-to-one sessions they ran."

See all our case studies
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