The government has announced plans for the first Collective Defined Contribution (CDC) scheme in the UK, following the results of the consultation it launched last November. The responses showed a growing interest in CDC schemes, with the vast majority of respondents supporting the proposals. Royal Mail, backed by the Communication Workers Union, has spearheaded the initiative and its scheme will be the first CDC scheme trialled. However, after delivering this single employer model for Royal Mail, the government has committed to working with the pensions industry to develop CDC models for wider application, in particular decumulation-only vehicles and DC master trusts. The big challenge that has been identified for CDC schemes is how to communicate the variable nature of the benefits to members.