Interestingly, the bill also legislates for what could be an entirely new style of pension scheme.
Collective Defined Contribution (CDC) schemes have been discussed extensively in parliament and within the DWP in recent years given the expense associated with other types of pension plans.
These types of schemes, according to the government, have the potential to increase returns for millions, while being more sustainable for workers and employers.
In a commons research briefing published in early July, it was detailed that: “The existing UK workplace pensions framework enables employers to offer either Defined Benefit (DB) or Defined Contribution (DC) schemes. There are downsides to both of these types of scheme: DC schemes may give a less predictable retirement income for scheme members and DB schemes can create significant risks to the employer.