Tag: pensions

TPT Unveils New ‘Run-On’ Superfund to Modernise UK Pension Strategy

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.”

 

Companies Leading the Way in Pensions

Setting up a private pension fund sooner rather than later has long been the advice of financial experts. But with more and more businesses offering private pension services, which are the leading companies, and how do you distinguish between the options? 

Starting a Private Pension Fund 

Distinct from the public pension contributions or those offered by workplaces, personal pension funds are assets put into investments, like stocks and shares. Most workplaces now offer enrolment automatically into a pension fund. Choosing a private pension provider gives you a chance to consolidate your pensions together, making it easier to manage and track.

Tax is a significant consideration when looking into private pension investments. Regardless of which company you choose to invest with, any earnings on pension fund investments are tax-free. Also, income tax paid on money allocated to private pension contributions has a certain percentage of tax relief. Tax relief and allowance are, of course, limited and assessed on individual circumstances. Pension providers generally work best for self-employed individuals or those who don’t have a workplace pension or are working towards an early retirement goal. 

Top Pension Providers

Depending on an individual’s circumstances, one pension provider may be more attractive than another. This can be due to the size of the pension pot, how active the pension contributor will be in investing, and employment status But who is the best pension provider in the UK? The top-performing pension providers include Prudential, Invesco, Phoenix, Moneyfarm, and Vanguard. It should be noted that each has pros and cons for particular circumstances. 

For example, many opt for a company that offers ready made personal pension solutions and are suitable for anyone with no previous investment experience. This type of pension means that it is possible to contribute regularly monthly payments as well as lump sum payments. Ready made options are straightforward to manage, and the pensions company takes all tax relief. Moneyfarm, for example, offers a ready made personal pension service with a very low minimum contribution.  

Assessing Personal Pension Providers

There are many pension providers in the UK and Ireland, so how do consumers assess each company’s services? The entire point of a private pension fund is to invest the maximum amount in the most profitable way possible. For this reason, the first consideration should be fees. Carefully assess administration fees, transfer fees, penalties, and management costs of each pensions provider, as this will, over time, make a massive difference to your bottom line. 

The private pension provider should be registered with the appropriate financial and regulatory body. Who regulates pensions in the United Kingdom? The Pension regulator (TPR) regulates workplace pension schemes, and the Financial Conduct Authority (FCA) regulates private financial firms. This is an essential criteria for a company providing pensions funds to meet, protecting themselves and their customer’s money. 

Before making a decision, it is always best to seek advice from a regulated financial adviser and do plenty of homework on each company.