open - accepting written submissions
Accepting written submissions; the deadline is 8 January 2018.
Scope of the inquiry
The Committee invites evidence from any interested parties on any or all of the following questions:
Benefits to savers and the wider economy:
- Would CDC deliver tangible benefits to savers compared with other models?
- How would a continental-style collective approach work alongside individual freedom and choice?
- Does this risk creating extra complexity and confusion? Would savers understand and trust the income ‘ambition’ offered by CDC?
Converting DB schemes to CDC:
- Could seriously underfunded DB pension schemes be resolved by changing their pension contract to CDC, along Dutch lines?
- How would this be regulated and how would the loss of DB pension promises to scheme members be addressed?
Regulation, governance and industry issues:
- How would CDCs be regulated?
- Is there appetite among employers and the UK pension industry to deliver CDC?
- Would CDC funds have a clearer view towards investing for the long term?
Rt Hon Frank Field MP, Chair of the Committee, said:
Terms of reference: Collective defined contribution pension schemes inquiry
Send a written submission
"What the Select Committee is aiming for is to retain some of the best features of company schemes in a different age when employers are no longer willing or able to sustain the burden of final salary promises to employees, who could club together and pool the risk themselves".