TPT Retirement Solutions will use Moody’s PFaroe software to support the modelling requirements for its new multi-employer CDC scheme.
TPT says its planning to launch the first multi-employer CDC int he market, once it receives the required authorisation.
Moody’s new CDC functionality builds on its widely-used valuation system for DB schemes, and is designed to support the distinct requirements of CDC schemes.
As well as standard valuation modelling, the software includes forward-looking modelling to predict potential pension increases for members, which is expected to be critical for CDC schemes, both during the authorisation process and once operational.
Moody’s says the tool’s ability to carry out asset liability modelling will provide important support to help CDC entrants come to market and manage their investment strategy once up and running.
Moody’s is a leading provider of risk data, intelligence, and analytical tools, with its suite of PFaroe software tools offering portfolio analytics and risk management capabilities for DB pension plans, consultants, and investment managers.
Alongside this multi-employer CDC scheme, TPT is also planning to offer will have six different consolidation vehicles to the market.
TPT Retirement Solutions head of CDC Paul Eagles says: “We are excited to partner with Moody’s to develop and deploy its new solution to help bring CDC pensions to the UK. As multi-employer CDC represents new territory for regulators, the industry and, most importantly, members, creating a robust scheme design is critical for the success of the scheme –modelling capabilities like this will play a vital role.”
Moody’s senior director and product manager Simon Robinson adds: “We are committed to delivering sophisticated risk management solutions across the UK pensions landscape and are pleased to develop PFaroe for CDC schemes. The flexibility of our software and ability to connect with our clients will be important in meeting the evolving needs of CDC as it grows in the UK.”