Collective Defined Contribution Pensions

Delivering a Collective Defined Contribution (CDC) pension scheme requires joined-up expertise across actuarial, investment, administration, governance and communications. Gallagher provides a bespoke approach to create a clear, compliant and sustainable solution.

CDC schemes pool risk within a shared fund, providing members with a lifelong income that adjusts with performance. For many organisations, they represent the next evolution in pension design, with potential for improved outcomes compared to Defined Contribution for the same contribution level.

Following the Pension Schemes Act 2021, the UK's first CDC scheme has launched, which Gallagher advises on, with further models now emerging. This includes Retirement CDC as a 'decumulation' option from DC, rather than the existing 'Whole-of-life CDC', and Unconnected Multiple Employer Schemes (UMES) to expand beyond the current 'single-employer' CDC framework.

Why choose Gallagher to support your CDC journey

Gallagher has played a central role in the development of CDC in the UK. Our specialist teams bring together the full range of expertise needed to support trustees, employers and scheme proprietors to design, launch and operate a CDC scheme.

Our expertise includes:

Advising on the design and authorisation of the UK's first, and currently only, CDC scheme
Acting as investment consultant to the trustee board of the UK's first CDC scheme
Market-leading actuarial modelling, investment strategy, communications design and administration

Specialist expertise across all aspects of Collective Defined Contribution pensions

Our teams provide end-to-end support across all dimensions of CDC development.

Actuarial and valuations

CDC relies on robust actuarial design and valuations. We can guide you through what matters, such as accrual structure, life expectancy factors and smoothing approach. We advise on valuations, benefit adjustment mechanisms, viability testing and the crucial link between actuarial modelling and investment decisions.

Investment strategy

A CDC scheme's investments will be a key driver of members' pension outcomes. We advise on the design, implementation and oversight of an investment strategy that maximises growth potential while managing risk for the collective.

Administration

CDC requires bespoke administration systems and high-quality administration services. Our experience across DB and DC, including CARE schemes and multi-employer structures, means we are well placed to support CDC administration set-up and ongoing running, balancing innovation with operational practicality.

Member communications

CDC is new and different. We develop communication strategies that build understanding and confidence, particularly around how benefits may increase or decrease and how collective models work in practice.This is important to get right both at the outset and on an ongoing basis once the CDC scheme is up and running.

Structure and governance

With so many components needing to come together effectively to deliver CDC well, robust governance is necessary. We have the governance expertise and experience to help trustees, employers and providers cut through the noise and focus on what matters, with nothing slipping through the cracks.

Policy and regulatory engagement

Our experts regularly engage with government consultations and policy development, helping shape future stages of CDC regulation. This ensures our clients are well placed for market and legislative change. We have live experience of engaging with the Regulator in respect of the authorisation and supervision of a CDC scheme.

Support for employers, trustees and providers

Whether you're exploring Collective Defined Contribution pensions or preparing for implementation, we provide tailored support including:

Feasibility assessments
Scheme design workshops
Trustee and employer training
Regulatory guidance and readiness reviews
End-to-end design and implementation support

Start your journey with Gallagher

Collective Defined Contribution is reshaping workplace pensions in the UK. With expertise across actuarial, investment, administration, governance and communications, we support organisations in designing and running effective CDC schemes.

Collective Defined Contribution Pensions

End-to-end CDC expertise, from feasibility and design through to implementation and ongoing operation
Experience supporting early CDC scheme design and development in the UK
Integrated advice across actuarial, investment, governance, administration and communications
Supporting employers, trustees and providers to deliver compliant, sustainable pension solutions