Royal Mail launches UK's first CDC scheme

Oct. 8, 2024 - Pensions Age

The Royal Mail Collective Plan launched today (7 October), in what has been highlighted as the start of a "new pensions era". The new scheme, which is the UK's first collective defined contribution (CDC) scheme, is set to offer over 100,000 Royal Mail employees a cash lump sum and an income in retirement.

Initially announced in 2018, the Royal Mail Collective Plan became the UK's first CDC scheme in 2023 after passing The Pensions Regulator's (TPR) assessment process, marking a "milestone" moment for the industry. Every employee with at least a year’s service eligible to join, with the vast majority of Royal Mail employees expected to join the Collective Plan automatically.

Commenting on the launch, Royal Mail director of group pensions, Angela Gough, said: “The Collective Plan is the future of pensions at Royal Mail and we believe it is the right scheme for our people and our company...