Marvin OnumonuTPT Retirement Solutions (TPT) has announced plans to launch a new defined benefit (DB) superfund focused on run-on.
TPT has secured capital to fund the first £1bn of transactions and is seeking assessment from The Pensions Regulator (TPR) for the new consolidation vehicle.
The superfund is designed to support schemes that cannot afford a full buy out with an insurer, offering an alternative endgame solution for corporate DB pension schemes.
Once a scheme moves to a superfund, the responsibility for the scheme passes from the original sponsor, and the employer covenant is no longer required.
TPT said its superfund will have an independent trustee board and full-time executive team.
Nicholas Clapp, chief commercial officer at TPT, said: “We’re very excited to announce our plans to launch a superfund that targets run on rather than a bridge to buy out.
“There is real opportunity here, and our intention to launch a superfund forms part of a broader ambition to offer a full suite of consolidation options to schemes to suit their bespoke needs.”
TPT stated that its approach puts members’ interests at the core, with plans for distributions from surplus to members from year five onwards, once risk capital has been returned to investors.
The aim is to increase the likelihood that members receive full benefits.
TPT’s proposition is intended to support schemes that do not have large surpluses.
At present, only one superfund in the UK has been assessed by TPR and it targets buy out as an end goal.
TPT’s focus is to broaden the range of options for employers and trustees.
David Lane, CEO of TPT, said: “At TPT, we believe consolidation vehicles such as this provide better outcomes for members.
“They benefit from economies of scale supporting TPR’s ambitions for fewer, larger, well-run schemes which provide better value for money.
“By design, superfunds also come with big pools of capital for investment – the creation of which aligns closely with the Government’s ambitions for economic growth.”
