TPT Retirement Solutions has announced plans to launch a new Defined Benefit (DB) superfund designed for a very different purpose than traditional models—helping pension schemes run on sustainably, rather than pushing them toward costly insurance buy-outs.
The move signals a shift in how pension consolidation is evolving, especially as funding levels across the UK market improve and schemes look for more flexible long-term options.
A Smarter Approach to Pension Consolidation
At its core, a DB superfund allows pension schemes to transfer their liabilities away from their original corporate sponsor and into a professionally managed, pooled structure. This reduces reliance on the employer while improving long-term stability.
What makes this new superfund different is its focus on “run-on” strategies—allowing schemes to continue operating and generating value, rather than treating consolidation as a stepping stone to full buy-out.
This approach is becoming increasingly relevant. Around four in five UK DB schemes are now in surplus, with funding levels reaching approximately 120%. Instead of simply securing liabilities with insurers, many schemes are now exploring how to optimise those surplus positions.
TPT has already secured capital to support its first £1 billion in transactions, creating a strong foundation for early adoption once regulatory approvals are in place.
Designed Around Member Outcomes
A key feature of the new superfund is its focus on delivering better outcomes for members over time.
Under the proposed model:
- Surplus distributions to members are expected to begin from year five
- Over time, members receive a growing share of the surplus once investor capital has been repaid
This structure is designed to align incentives between investors and pension members, ensuring long-term value creation rather than short-term gains.
The superfund will be governed by an independent trustee board, supported by a dedicated executive team. Once a scheme transfers in, the sponsoring employer steps away from ongoing responsibilities, reducing administrative burden and costs.
Backed by Regulators and Industry Momentum
The concept of DB superfunds has gained traction with regulators, including The Pensions Regulator and Department for Work and Pensions, both of which have signalled support for the model.
Clear regulatory guidance is already in place, giving trustees a framework for assessing whether superfunds are suitable for their schemes.
This latest development is part of a broader expansion strategy from TPT. Alongside the superfund, the organisation is also working on:
- A multi-employer Collective Defined Contribution (CDC) solution
- A defined contribution income-for-life product
If all regulatory approvals are secured, TPT could soon operate six different consolidation vehicles—making it one of the most diversified players in the UK pensions space.
What TPT Leadership Says
Nicholas Clapp, Chief Commercial Officer at TPT Retirement Solutions, 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.”
David Lane, Chief Executive of TPT Retirement Solutions, 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.”