What is CDC?
The abbreviation “CDC” stands for Collective Defined Contribution. Such a pension scheme works as follows.
Yearly Unilever Netherlands pays Forward a certain amount of money. That’s the ‘defined contribution’, meant for the pension accrual of all employees in that year. The contribution Unilever Netherlands pays is determined once a year, following a set calculation method. As an employee you pay part of the total contribution. This employee contribution is deducted from your gross salary.
Normally this (total) contribution is enough for the pension accrual we aim for. There is a minor risk that Unilever's contribution turns out to be insufficient for the yearly pension accrual; in that case we have to reduce this accrual for that specific year.