31 July 2026
Festina Finance, a leading European provider of pension administration technology, today said that as Collective Defined Contribution (CDC) schemes move closer to implementation in the UK, the focus must extend beyond policy, regulation and scheme design to the practical considerations that will support successful delivery.
Dan McLaughlin, UK Country Head at Festina Finance, said: “CDC represents an important development for the UK pensions market, introducing a different approach to pension provision through collective management of assets and risk-sharing mechanisms. With regulations enabling unconnected multi-employer CDC schemes coming into force on 31 July much of the discussion around CDC to date has understandably focused on regulation, governance and scheme design. These are essential building blocks, but a framework alone will not deliver successful outcomes unless equal consideration is given to how CDC will operate in practice.
“As CDC moves from policy development towards implementation, the focus must also turn to the operational foundations needed to support schemes effectively. High-quality data, robust administration processes and flexible technology infrastructure will be critical to managing complex calculations, supporting effective decision-making and communicating clearly with members.”
McLaughlin added: “Recent surveys conducted across the industry have shown growing interest in CDC, but also a degree of caution. That is understandable. CDC represents a new approach for the UK pensions market, but it also highlights the significant opportunity ahead.
“CDC has the potential to become a credible third way between traditional defined benefit and defined contribution models, providing the industry with an exciting opportunity to rethink how retirement outcomes can be delivered. However, getting the operational foundations right will be essential to building confidence among trustees, employers and members. The broader industry has seen how transitioning to a new system or product can create systemic risks. The right technology and operational capability will help schemes manage CDC effectively, adapt as requirements evolve and ultimately realise the full potential of this new model.”
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