Collective_Defined_Contribution
Collective Defined Contribution
Type of pension
Collective Defined Contribution pension schemes (CDCs) enable savers to pool their money into a single fund to share investment risk and longevity risk. Such schemes became popular in the Netherlands in the early 2000s.[1] CDCs tend to have lower operating costs than smaller individual schemes.[2]
The CDC fund pays a monthly or annual pension income. Pension incomes vary depending on the funding level of the CDC.