TPT Retirement Solutions is set to launch a multi-employer collective defined contribution (CDC) pension scheme, with plans to complete authorisation by the end of 2026.
The move follows a recent announcement from the UK pensions minister Torsten Bell confirming that legislation enabling multi-employer CDC schemes will be introduced after Parliament’s summer recess, with Bell claiming that “several organisations are actively looking to set up unconnected multiple employer CDC schemes”.
TPT is the first provider to officially declare its intention to enter the multi-employer CDC pensions market after Royal Mail launched the first single-employer CDC pension fund last year.
It said it is currently designing a new multi-employer CDC fund, with plans to complete authorisation by the end of 2026.
The new CDC fund will extend TPT’s range of consolidation solutions in the UK. In parallel, TPT will develop bespoke single-employer CDC schemes for larger businesses seeking tailored solutions.
This new CDC offering will complement TPT’s existing DC and defined benefit (DB) arrangements, resulting in an extensive range of pension scheme options for its clients, the provider said.
Andy O’Regan, chief client strategy officer at TPT Retirement Solutions, said: “We are excited to be at the forefront of pension innovation in the UK.”
He added that making CDC accessible to all employers, regardless of size, is a “significant step forward for the industry”, adding: “For interested employers, offering a CDC scheme could become a powerful tool for talent attraction and retention.”
David Lane, chief executive officer of TPT Retirement Solutions, added that the pensions industry is at a point where innovation is “critical”.
“We believe there is a clear opportunity for CDC schemes to fill a gap in the pensions market and could be the right solution for many employers and scheme members. Our track record in managing large-scale, multi-employer pension schemes means we are well-placed to lead this transformation,” he noted.
The news was welcomed by the pensions minister.
“I am delighted to see TPT confirming plans for a multi-employer CDC scheme, just days after I set out the timeline for new legislation to enable these new types of pension schemes,” Bell said.
He added that CDC schemes are set to be an “important, innovative addition to the UK pensions’ landscape with the potential to improve the pension outcomes for millions of savers”.
Hari Mann, co-chair of the RSA CDC Forum, said TPT’s move marks an “important and historic milestone for the sector”, enabling access to improved retirement outcomes for those who deliver exceptional value to our society through their work.
He added: “TPT is well placed to lead this initiative, with a strong track record of providing innovative and high-quality pension solutions to its members.”
Paul Waters, head of DC markets at Hymans Robertson, said it is “encouraging” to see a provider make a “clear” commitment to provide a whole of life CDC scheme to their members.
He said: “CDC enables DC members to benefit from higher expected pensions, and a secure income for life, while having fewer daunting decisions to make than in DC.
“We expect more multi-employer schemes to launch, and in the meantime, employers are assessing the benefits and determining how CDC could work for their members.”
Waters expects this to pick up pace over the coming months as employers weigh up the advantages of being an early adopter in their sector versus waiting for the CDC market to develop further first.
Read the digital edition of IPE’s latest magazine
