Collective Defined Contribution

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. CDCs tend to have lower operating costs than smaller individual schemes.
The CDC fund pays a monthly or annual pension income. Pension incomes vary depending on the funding level of the CDC. 
Advantages.
Following a lengthy public consultation involving 70 contributors from the pension & insurance industry around the world, the United Kingdom Department for Work and Pensions concluded that CDCs offer the following advantages for consumers:
Disadvantages.
The key risk facing CDCs is Intergenerational risk transfer where older members are paid too much relative to younger members or vice versa. Whilst many solutions have been proposed for managing this risk, a simple to understand and actuarially fair method to eliminate this risk is to segregate separate age group cohorts into mini-CDCs and to manage these groups as a Tontine.