LONDON, 08 October, 2024 – Aon plc (NYSE: AON), a leading global professional services firm, has welcomed the Department for Work and Pensions’ new consultation on the draft regulations governing whole-life multi-employer CDC schemes in the UK.
Chintan Gandhi, partner and head of Collective DC at Aon in the UK, said:
“This long-awaited consultation is the next big step for CDC. Opening up to multi-employer CDC schemes, including those provided by master trusts, will meet the needs of employers and the self-employed. We believe these have the potential to help over 30 million UK workers build up a pension.
“However, looking beyond the regulations, we ask for the swift extension of The Pension Regulator’s CDC guidance - this is of equal importance. It is only with visibility of the entire regulatory regime that providers can judge whether they can introduce multi-employer whole-life CDC schemes to the masses - and in a way that is commercially viable.”
Chintan Gandhi continued:
“Multi-employer whole-life CDC schemes - perhaps delivered by master trusts - will allow sharing investment and longevity risks across the entire scheme membership, while providing better pension outcomes in retirement, on average, than might otherwise be available. Whole-life CDC would provide employees with an income for life in retirement – an income that is expected to keep pace with the cost of living and without individual members needing to make complex decisions.”
Matthew Arends, partner and head of UK Retirement Policy at Aon, said:
“This type of multi-employer whole-life CDC scheme should then be of interest to all employers, including those in sectors where workforces are transient in nature, or where they typically move around between a group of employers.
“Using the launch of the new Royal Mail scheme 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.”
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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