TPT chief executive David Lane: There is a clear opportunity for CDC schemes to fill a gap in the pensions market
TPT Retirement Solutions has announced its intention to enter the multi-employer collective defined contribution (CDC) pensions market.
The provider is understood to be the first to declare it will enter the multi-employer CDC market after pensions minister Torsten Bell confirmed plans to lay legislation in the Autumn to allow such schemes to be established.
TPT said it is currently designing a new multi-employer CDC scheme, with plans to complete authorisation by the end of 2026.
The new multi-employer whole-of-life CDC pension scheme 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.
It said this new CDC offering will complement TPT's existing defined contribution (DC) and defined benefit (DB) arrangements, resulting in an extensive range of pension scheme options for its clients.
TPT Retirement Solutions chief client strategy officer Andy O'Regan said: "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.
Chief executive David Lane added: "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 added: "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."
Hymans Robertson head of DC markets Paul Waters said it was encouraging to see a provider make a clear commitment to launch a CDC multi-employer pension scheme – noting it was a "trailblazing stance" to provide such a whole of life CDC scheme.
Waters 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. This is set 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."
