Collective Defined Contribution

Collective Defined Contribution (CDC) - the next generation of retirement solutions

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CDC - the next generation of retirement solution

Collective Defined Contribution (CDC) presents a significant opportunity to reshape and improve retirement outcomes in the UK. As legislation opens the door to commercial CDC arrangements, organisations are exploring a model that can provide members with a retirement income for life through collective investment and risk-sharing.  

The success of CDC will depend not only on scheme design, but on effective implementation, administration and communications. New arrangements must meet regulatory requirements, operate efficiently at scale and help members understand how CDC works and what it means for their retirement. 

Aptia combines deep expertise across both defined benefit and defined contribution pensions, together with proven capabilities in administration, member experience and communications. From implementation and onboarding through to ongoing operation, we help organisations establish and run CDC schemes with confidence. 

What sets us apart
CDC sits at the intersection of defined benefit and defined contribution pensions. Few organisations have extensive experience across both. Aptia administers some of the UK's largest and most complex pension arrangements, bringing together expertise in scheme operations, governance, member servicing and pension administration. That breadth of experience allows us to support CDC schemes throughout their lifecycle, helping clients navigate the complexities of a new and evolving market.
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CDC - Inhouse Capabilities
The success of CDC will depend on member understanding and trust. Target benefits, collective investment and potential income variability represent a new way of thinking about retirement saving for many members. Our specialist communications team helps turn technical pension concepts into clear, engaging and accessible communications that support understanding, improve engagement and help members make informed decisions throughout their retirement journey.
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CDC - Digital first.we
Delivering an exceptional member experience requires more than strong administration. Aptia's digital capabilities help schemes provide intuitive self-service tools, online access to pension information and member journeys that support engagement at every stage. Combined with our technology-enabled administration model and data expertise, we help CDC providers create modern, scalable solutions designed for the next generation of pension savers.
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CDC - Digital first

Services we offer

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dashboard-ready
Dashboards readiness

Preparation and delivery of pensions dashboards connectivity and supporting operational processes.

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member-comms
Member communications

Delivery of communications and engagement activity to support change and regulatory programmes and improve existing member journeys.

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member-services
Member and policyholder services

We support members through every stage of their journey – from day-to-day enquiries and key life events including benefit calculation and data maintenance, underpinned by accurate record keeping.

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CDC has the potential to become a mainstream part of the UK's retirement system and significantly improve outcomes for future generations of pension savers.
Guy Opperman
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Strategic Adviser at Aptia and former Pensions Minister
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FAQs
What is Collective Defined Contribution (CDC)?
Collective Defined Contribution (CDC) is a pension arrangement that pools contributions and investments across members to provide a target retirement income. Unlike traditional defined contribution pensions, the focus is on delivering an income in retirement rather than building an individual pension pot.
How is CDC different from a defined contribution (DC) pension?
In a DC pension, each member has their own pot and makes decisions about how to access it at retirement. In a CDC scheme, assets are invested collectively and the scheme aims to provide a regular retirement income for life.
How is CDC different from a defined benefit (DB) pension?
DB schemes provide guaranteed benefits backed by the sponsoring employer. CDC schemes do not provide guarantees. Instead, they target a level of retirement income, allowing members to benefit from collective investment and risk-sharing without creating ongoing funding liabilities for employers.
John Wilson
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John Wilson

Head of Pensions Technical, Aptia

John is Aptia’s Head of Pensions Technical and has worked in pensions for almost 40 years. John chairs the Scottish groups of the Society of Pension Professionals and Pensions Management Institute and is a member of the SPP’s Legislation Committee.