TPT Retirement Solutions’s DB Superfund has appointed Mercer as its scheme actuary and LCP to provide independent investment oversight.
The trustee board has also appointed Gowling WLG to provide legal advice and EY as the superfund’s risk adviser.
The board said these four external firms will play an important step in the development and ongoing management of this Superfund solution, as well as supporting in the process of regulatory assessment.
TPT’s Superfund proposition offers a run-option for DB schemes effectively expanding the range of endgame solutions available to employers and trustees.
With many schemes experiencing improved funding levels over recent years, the superfund proposition represents a viable route for those schemes that still fall short of full funding on a buyout basis. TPT says that four in five UK DB schemes are currently in surplus with an aggregate funding level of 120 per cent on a technical provisions basis.
Superfunds that run on are also well placed to invest in growth assets, supporting the Government’s growth ambitions for the UK economy.
Mercer funding and benefits partner Michael Kelly says: “We are looking forward to continuing to work with TPT and the Superfund Trustee Board to deliver a comprehensive service to this innovative industry development.”
James Fermont at LCP, adds “The unique investment requirements for a DB Superfund designed for run-on are complex. We look forward to working with the Superfund Trustee Board alongside TPT’s investment team to deliver an investment strategy that supports its members and delivers a first-class product for savers.”
TPT has also recently announced plans to offer a multi-employer Collective Defined Contribution (CDC) proposition, and launched a DC income-for-life proposition. Pending regulatory authorisations, TPT aims to have six different consolidation vehicles available in future.
Nicholas Clapp, chief commercial officer at TPT Retirement Solutions says: “At TPT, we believe consolidation vehicles can fundamentally generate better outcomes for members. Our Superfund will benefit from economies of scale and, with the support of these best-in-class advisers, can achieve value for money and support our ambition to make pension schemes perform better for everyone.”
