Can multi-employer CDC schemes be fair?

To be successful multi-employer collective defined contribution (CDC) schemes need scale, says abrdn. Without multi-employer arrangements, they will likely only be available to the largest employers. Additionally, this is a new type of arrangement in the UK. The startup costs are therefore likely to be high – which will be prohibitive for many. However, running a multi-employer CDC scheme comes with a new set of challenges compared with single-employer arrangements. Here, we focus on one key challenge – how contributions are converted into target pension amounts.