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DWP Backs Pension Overhaul as TPT Secures Funding for DB Superfund to Pursue £1bn Deals

Pooling defined‑benefit schemes could, subject to regulation and investment outcomes, allow surplus cash to be paid to members.

Overview

  • The Department for Work and Pensions has endorsed the Pension Schemes Bill, which targets poor‑performing schemes, merges small pots, and builds larger funds to improve outcomes.
  • Pensions minister Torsten Bell has framed the reforms as accelerating efforts to deliver better value so workers can expect higher retirement incomes.
  • TPT Retirement Solutions says it has financing in place to launch a defined‑benefit consolidator and aims to complete about £1bn of transactions, with the provider managing roughly £11.1bn in assets.
  • TPT’s model would let schemes run on rather than move straight to insurer buyouts, with any surplus potentially shared with members depending on entry funding levels and long‑term performance; over 25 years, most surplus would go to members, its chief executive said.
  • The Pensions Regulator welcomed innovation that could improve saver outcomes but has set a high bar, and advisers cautioned that run‑on superfunds carry a different risk profile requiring close scrutiny.