Two UK employers have backed the launch of a new collective defined contribution (CDC) pension scheme as the model continues to gain traction.
High street chain Timpsons and food group Vestey are behind the launch of Arboreum Pensions, a CDC vehicle operated by Collective Pensions. This is an entity set up by Vestey and Western Pensions Solutions, which emerged out of the food group’s internal defined benefit scheme management.
Arboreum is a whole-of-life CDC arrangement, according to its website. Hymans Robertson is the scheme’s actuarial adviser, with CMS providing legal advice. Lauren Ireland is governance adviser through her firm Ideal Governance.
Arboreum’s team includes managing director Adrian Boulding, former director of policy at Now Pensions, who has been working on various CDC projects since 2022, including at Vestey Holdings.
Fabian Uhlig, formerly of M&G and Pension Insurance Corporation, is the pension scheme’s chief financial officer, while Matt Ashton-Smith is chief operating officer. He has previously worked at TPT Retirement Solutions, Aon and Law Debenture, and is founder of pensions data specialist firm D8a People, which is also owned by Collective Pensions.
Arboreum becomes the latest firm to enter the CDC arena. Aon has stated its intention to launch a CDC scheme, as has TPT Retirement Solutions. LifeSight, the traditional defined contribution master trust operated by WTW, also aims to offer a retirement-only CDC once regulations are in place.
In addition, the Church of England is also known to be exploring a CDC scheme.
The Pensions Regulator (TPR) opened its application process for multi-employer CDC schemes last month, building on the single-employer system introduced in 2021 to facilitate the launch of Royal Mail’s CDC plan.
In a statement on 3 August, the regulator urged organisations considering CDC to “engage early with TPR… to support a smooth authorisation process and avoid surprises”.
Paul Waters, head of DC markets at Hymans Robertson, described the dawn of multi-employer CDC schemes as “one of the most significant innovations in UK pension provision for many years”.
