TPT Retirement Solutions (TPT), one of the UK’s leading workplace pensions providers, has today announced that its new defined benefit (DB) superfund has achieved a successful outcome following The Pensions Regulator‘s (TPR) assessment process.
A successful outcome marks a significant milestone for TPT’s Superfund, demonstrating that the proposition has met TPR’s requirements designed to protect the security, and support the effective governance, of members’ benefits.
This outcome enables TPT to bring its Superfund to market and progress its first transactions. TPT has already secured the capital required to fund the first £1bn to £1.5bn of transactions which it anticipates will be sufficient to support a number of deals, subject to scale, transaction approval and market conditions. TPT is in active discussions with a growing number of schemes who are interested in entering its Superfund arrangement.
Built to run-on, TPT’s Superfund aims to generate additional value which can be shared with members, giving them a stake in future success. Its long-term approach provides access to a broader range of investment opportunities, economies of scale and greater flexibility. Combined with a built-in surplus-sharing mechanism, this creates the opportunity for value generated over time to be shared with members.
TPT’s entry into the superfund market provides a new option for schemes for whom buy-out is not a viable option, expanding choice for trustees and sponsors in the DB endgame market.
The expansion comes as interest in DB endgames continues to grow. Recent research from TPT found that 57% of trustees surveyed say they are currently considering consolidation into a superfund as an endgame option for their scheme*. Both TPR and the Department for Work and Pensions (DWP) have also expressed their support for superfunds, including the potential benefits of greater scale and access to a broader range of investments.
The introduction of a superfund builds on TPT’s 80 years of experience in providing retirement income security to its members. TPT has established in-house expertise across administration, actuarial, investment and governance, and currently supports 66 DB schemes within its master-trust and multi-trust propositions, capabilities that it will bring to the superfund market.
TPT has also signalled its intention to launch the UK’s first multi-employer CDC proposition. Subject to regulatory authorisations, TPT will have six different consolidation vehicles.
David Lane, CEO at TPT Retirement Solutions, said: "This is a landmark moment for TPT and one of the most significant milestones in our history. Achieving a successful outcome through The Pensions Regulator's assessment process enables us to bring an innovative new superfund to the market, expanding choice for trustees and sponsors. We are incredibly proud of the proposition we've built and the opportunity it creates to deliver long-term security and value for members.”
Nadeem Ladha, Chair of TPT’s Superfund Trustee Board and Partner at Aretas Trustees, said: “I am delighted that The Pensions Regulator has positively assessed the Superfund following a rigorous and robust submission process. It has been a privilege to work alongside such a high-calibre Trustee Board throughout the pre-assessment and assessment process.
“Our focus now, as trustees, is on the future and, above all, on members. We look forward to working with TPT to provide a secure long-term home for DB pension schemes, while giving members the opportunity to share in the value created over time.”
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