TPT has launched a new collective defined contribution (CDC) modelling capability, powered by Moody’s PFaroe software, as it prepares to launch the UK first multi-employer CDC scheme.
The new functionality has been developed specifically for CDC schemes and builds on Moody’s valuation system for defined benefit (DB) schemes.
Alongside standard valuation modelling, the system can model potential future pension increases for members. This will be used during the CDC authorisation process and once the scheme is operational.
The software also provides asset-liability modelling, which TPT said will support the development of investment strategies for CDC schemes.
The system can be used by in-house actuaries and investment managers, as well as external advisers including scheme actuaries.
The launch comes as TPT prepares to bring its multi-employer CDC scheme to market. Subject to regulatory authorisation, TPT will have six consolidation vehicles.
Paul Eagles, head of CDC at TPT Retirement Solutions, said the modelling capability would support the development of the scheme as multi-employer CDC is introduced in the UK.
“Creating a robust scheme design is critical for the success of the scheme – modelling capabilities like this will play a vital role,” he said.
Simon Robinson, senior director and product manager at Moody’s, added that the software has been developed to meet the requirements of CDC schemes as the market develops in the UK.
