The Pensions Bill, to be revealed in the Queen's Speech on Wednesday, is widely expected to feature the reform.
It would allow workers to be able to pay into funds shared with potentially thousands of other members.
Proponents argue that pension incomes will be higher due to lower costs from running collective, rather than individual funds, but the scheme has critics, who believe the benefits are unproven and uncertain.
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Pensions Minister Steve Webb has spoken earlier this year about his support for the idea.
He was quoted by The Times as saying: "Some of the best pension schemes in the world are run on a collective basis. I would like to see British workers have access to schemes run on this basis."
Tom McPhail, head of pensions research at Hargreaves Lansdown, has been one of the sceptics to cast doubts over the scheme's merits.
Mr McPhail said the danger with such CDC schemes lies with the risk controls and if they are not properly regulated or if the investments fail to perform to expectations members can find payouts being cut.
He said: "The arguments in favour of these schemes are unproven.
"There is clear evidence both from recent Dutch experience and from our own with profits funds that such schemes can go down as well as up.
"They are complex, uncertain, unproven and rely on a constant flow of new members for their long-term sustainability."