Collective defined contribution (CDC) schemes can allow pension transfers, a senior partner at Aon Hewitt.
Several pension experts have questioned if collectively-invested pension schemes would be able to comply with pension freedoms, which were introduced in 2015.
But speaking at a Pensions Management Institute conference in London today (19 April), Kevin Wesbroom said CDC scheme members could have a transfer value anytime they wanted, up to the point of retirement.
He said: "It's a fair share of the fund. I'm going to look underneath the hood of the CDC scheme - we are always fully funded - and calculate the fair value of your share of this collective arrangement.
"It will feel like a defined benefit (DB) transfer probably, but you will have access to it at any point in time up to retirement."
CDC schemes differ from DB pensions in the sense they do not guarantee certain incomes in retirement.
Instead, CDC have a target amount they will pay out, based on a long term, mixed risk investment plan.
These schemes also differ from the traditional defined contribution (DC) plans in that they do not produce individual pension pots. Instead they invest savings in a larger collective pot, which provides an income to individuals during their retirement.
The main issue with transferring out of a CDC scheme is their collective nature and the is a sharing of risk, which could be undermined in members are allowed to transfer out.
The Pension Schemes Act 2015 created by the coalition government defined CDC as a distinct pension category, but secondary legislation to bring them into effect was never introduced.
Mr Wesbroom said one of the advantages of a CDC scheme, when compared to a DC plan, was that the money is collectively invested, and the scheme acts as its own insurance company, so it can pay an income for life.
He said: "We get an outcome that doesn't play the pensions roulette, and I'm getting a higher return, since I'm investing for longer term."
Royal Mail is currently working with the Department for Work and Pensions on the changes needed to introduce CDC schemes in the UK, which was also previously confirmed by pensions minister Guy Opperman.
Mr Wesbroom said this would probably lead to more CDC schemes being introduced.
Royal Mail reached an agreement with the Communication Workers Union in February, as part of which a CDC scheme will replace its DB one, which closed at the end of March.
In the meantime Royal Mail workers have approved this deal, which also includes the creation of a DB lump sum vehicle alongside the CDC scheme.
With these two pension arrangements, the company would expect to contribute 13.6 per cent of members' pensionable pay, and members would contribute 6 per cent.
maria.espadinha@ft.com
