TPT reveals plans to launch multi-employer CDC pension scheme

TPT Retirement Solutions has announced plans to launch its own collective defined contribution (CDC) scheme, making it the first provider to publicly declare its intention to enter the multi-employer CDC pensions market.

Following on from the Pensions Minister’s recent announcement that legislation enabling multi-employer CDC schemes will be introduced in the autumn, TPT confirmed that it is currently designing a multi-employer CDC scheme, with plans to complete authorisation by the end of 2026.

The new multi-employer whole-of-life CDC pension scheme is set to extend TPT’s range of consolidation solutions in the UK, sitting alongside its DB and DC propositions.

In parallel with this, TPT will also develop single-employer CDC schemes for larger businesses seeking tailored solutions.

Pensions Minister, Torsten Bell, welcomed the news, stating: “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.”

Adding to this, 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.

TPT Retirement Solutions chief executive, David Lane, also argued that there is a “clear opportunity for CDC schemes to fill a gap in the pensions market”, suggesting that this could be the right solution for many employers and scheme members.

Industry appetite has already been demonstrated, as previous research from Hymans Robertson revealed that nearly half (41 per cent) of companies with defined contribution (DC) schemes are ‘very likely’ to introduce a CDC pension scheme or a risk-sharing alternative.

And the news that TPT is looking to launch its own multi-employer CDC scheme has been welcomed by Hymans Robertson, with head of DC markets, Paul Waters, suggesting that the company was taking a “trailblazing stance”, by looking to provide a whole of life CDC scheme to their members.

Waters suggested that momentum around CDC could also be set to pick up pace in the near future, stating: “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.”