Government Announces Consultation on CDC Pensions
The Four Pillars Agreement committed Royal Mail and the CWU to introduce a new, groundbreaking Collective Defined Contribution pension scheme to provide all members with a wage and security in retirement.
Since the Agreement was signed back in February 2018, both parties have been working hard to lobby the Government and secure the widest political support to enact the necessary legislation to get our CDC scheme introduced as quickly as possible.
After months of joint campaigning, the Government yesterday announced it intends to launch a formal consultation on enabling CDC schemes in the UK. Their statement says:
“Collective forms of pension saving offer interesting new possibilities, and the Department is currently working through proposals for the first Collective Defined Contribution schemes in the UK. We intend to launch a formal consultation in the autumn.”
The Government’s announcement comes in the wake of the recent Work and Pensions Select Committee report which set out the advantages of CDC and demonstrated wide support for collective pensions from a variety of stakeholders including the TUC, CBI, Royal Society of Arts (RSA), Pensions Policy Institute (PPI) and the Institute and Faculty of Actuaries.
The launch of the consultation clearly represents a welcome and important step forward in our historic journey to introduce the UK’s first ever CDC scheme and is testament to the Union’s long and successful pension campaign. The consultation also marks a significant milestone in our efforts to secure a decent wage in retirement that provides a good standard of living for all our members in their later years.
Building on the wide support we have secured across the political spectrum, CWU and RMG will continue to work hard over the coming months to highlight the benefits of CDC schemes and work closely with DWP officials to put the legislation and regulatory framework in place to secure the earliest possible introduction.
Any enquiries in relation to the contents of this LTB should be addressed to the DGS(P) Department.
Deputy General Secretary (Postal)