United Kingdom

Aon says the Royal Mail Collective DC scheme ushers in a new era for UK pensions

LONDON, 07 October, 2024Aon plc (NYSE: AON), a leading global professional services firm, has welcomed the launch today of Royal Mail’s Collective Pension Plan (RMCPP), incorporating Collective Defined Contribution (CDC) benefits – making it the first CDC scheme in the UK.

Chintan Gandhi, partner and head of Collective DC at Aon in the UK, said:

“The launch of the UK’s first CDC pension scheme is an important milestone in the UK’s pensions landscape. This has been over seven years in the making.

“Using this as a stepping-stone, we see tremendous value in the Government moving on to the swift introduction of scalable whole-life multi-employer CDC schemes. We believe these have the significant potential to help over 30 million workers in the UK build up a pension - including the self-employed.”

Matthew Arends, partner and head of UK Retirement Policy at Aon, said:

“Following Aon’s original 2013 research into CDC, we were proud to advise Royal Mail on the design of its CDC scheme. The RMCPP scheme design that has been introduced today is a direct evolution of our earlier work and provides Royal Mail with certainty over their pension costs while delivering to over 100,000 workers what most of them want in retirement - an income for life that is expected to keep pace with the cost of living.”

 

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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Media Contacts:

Colin Mayes
Aon
+44 (0)7801 748138
[email protected]

Anelia Fikiina
Kekst CNC
+44 (0)7970 952774
[email protected]