The UK government is set to announce new regulations to expand collective defined contribution (CDC) schemes in the hope of schemes making bigger investments into UK businesses and infrastructure.

It will launch a consultation outlining policy for retirement CDC schemes, which would allow people who have saved into a DC scheme to transfer their pension pot into a CDC scheme at retirement, and also lay regulations to allow for unconnected multiple employer schemes (UMES).

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Minister for pensions Torsten Bell will deliver a speech today to hundreds of UK employers setting out the benefits of CDC schemes and what the next steps are towards implementing them more widely. Currently, there is only one CDC scheme in the UK – the Royal Mail Collective Pension Plan, which has over 100,000 members.

The move has been praised by the UK’s pensions industry for its potential to boost retirement savings long-term.

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“By expanding CDC to more employers and consulting on retirement CDC, we are helping build a fairer pensions system that gives people confidence their hard-earned savings will last and they can enjoy their retirement,” Mr Bell said in a statement.

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