Collective Defined Contribution Pension Schemes Bill

Key Points

• Enables the establishment of collective defined contribution pension schemes, a type where retirement benefits are pooled and managed on a collective basis rather than individually defined.
• Frames the legal and governance requirements for creating and operating CDC schemes, including oversight and safeguards.
• Broadens pension choices for employers and workers by introducing a new scheme option, subject to existing pension laws and regulators.
• Contains connected provisions to align CDC schemes with current pension legislation and regulatory practice.
• The bill is currently at the 2nd reading in the House of Commons and would proceed to the next formal stages if supported.

Progress

The bill is at the 2nd reading in the Commons. If it progresses, it would move to committee stage, then report stage, before possible passage to the Lords.

Voting

Across the listed votes, Liberal Democrats, SNP and Greens generally supported the proposals, while the Conservative MPs largely opposed. Labour’s position was mixed, with significant Aye and No votes among its members.