Defined Contribution  

Royal Mail looks to create hybrid pension scheme

In the meantime, the company and union are talking about transitional arrangements, he added.

CDC schemes are already being discussed in Parliament, since the Work & Pensions select committee launched a consultation on these plans last month.

This type of retirement savings scheme has the “potential to address some of the concerns that policy makers and the public have about the current pension offer", the committee said, at the time.

The Pension Schemes Act 2015 created by the 2010 to 2015 coalition government defined "shared risk/defined ambition" or collective defined contribution as a distinct pension category.

However, regulations under the act to bring them into effect have not yet been introduced.