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Royal Mail’s Collective Plan delivers on the aspirations for CDC in its first year

Pensions & benefits CDC strategy and implementation
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Newly released information showed that Royal Mail’s new CDC plan delivered a significantly above inflation pension increase of 6.4% (CPI + 2.6%) for over 100,000 postal workers in its first year. This is an excellent result for the scheme that has set out to deliver real-term pension increases for its members.

For the scheme’s members and their representative union, this is a great result and shows members have really benefitted from the innovative new scheme design and strong investment returns delivered during the year.

Helen Draper LCP Partner

Other large organisations have been closely monitoring Royal Mail’s early years’ experience with CDC. We expect these results will now encourage others to progress their CDC plans over the upcoming period.

Steven Taylor LCP Partner

Notes to editors 

  1. The CDC valuation results can be found here: TheIncomeforLifeSectionsValuationSummary2025.pdf

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