A new wave of interest in “Dutch-style” pension schemes is sweeping through UK employers, with more than 200 companies expressing a desire to join a pioneering multi-employer collective defined contribution (CDC) scheme that could significantly boost workers’ retirement incomes.
The pensions administrator TPT announced on May 8 that it is pressing ahead with launching the UK’s first multi-employer CDC scheme, aiming to gain regulatory approval by 2026 and begin collecting contributions by the first half of 2027.
CDC schemes, widely used in the Netherlands, are pitched as a middle ground between generous but costly defined benefit (DB) schemes and more common defined contribution (DC) pensions. TPT claims that CDCs could generate pensions that are 20 to 50 per cent larger than standard DC schemes — all for the same contribution levels and risk profile.
Andy O’Regan, chief client strategy officer at TPT, said the organisation had spoken with over 200 employers who are “interested in pursuing this”, representing a potential membership base far exceeding the 3,000–6,000 individuals required to make the scheme viable.
“We’re confident we can hit the critical mass needed,” said O’Regan, adding that TPT is also exploring the development of single-employer CDC schemes for large corporates.
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