Following the deregulatory review of private pension legislation and a risk-sharing consultation in June 2008, the Government committed to consider how collective defined contribution (CDC) schemes might operate in the UK.

Broadly, the Government defines CDC schemes as defined contribution arrangements under which members pay contributions into a collective fund instead of into individual savings accounts, allowing investment risks to be shared amongst the members. Depending on how the scheme is structured, it is possible to allow those approaching retirement to be less heavily impacted by low returns than younger members and to allow increasing certainty about the rate of return the members could expect.

However, the Government has decided to take no further action in relation to CDC schemes, citing (amongst other things) legal issues and limited demand from employers.