TPT is the first provider to announce plans to launch a multi-employer whole-of-life collective defined contribution (CDC) scheme.
It plans to launch the CDC by the end of 2026, following legislation after the summer recess that will enable these new pension plans.
As well as a multi-employer offering TPT says it plans to develop bespoke single-employer CDC schemes for larger businesses seeking tailored solutions.
TPT says this new option will extend its range of consolidation solutions in the UK complementing its existing DC and DB propositions.
TPT already administers DB and DC master trusts for 470,000 members. It says this latest proposition will enable it to offer employers and members lifelong retirement income options across DB, DC, and CDC models.
TPT says CDC schemes combine key features of DB and DC models. For members, they offer an income for life, similar to DB schemes while for employers, they provide cost certainty more akin to a DC arrangement.
TPT Retirement Solutions chief client strategy officer Andy O-Regan says: “We are excited to be at the forefront of pension innovation in the UK. Making CDC accessible to all employers, regardless of size, is a significant step forward for the industry. For interested employers, offering a CDC scheme could become a powerful tool for talent attraction and retention.
TPT Retirement Solutions chief executive David Lane adds: “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.”
Minister for Pensions, Torsten Bell MP, said: “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.
“These 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.”
