TPT Retirement Solutions Moves to Expand UK DB Pension Consolidation Options with New Superfund

TPT Retirement Solutions, one of the UK's largest workplace pension providers, has announced plans to launch a new Defined Benefit (DB) superfund — one designed specifically to support run-on rather than serving as a bridge to full insurance buy-out.

The move adds a meaningful new option to a consolidation market that, until now, has offered limited alternatives for schemes that fall short of full buy-out funding.

Why This Matters for the Consolidation Market

DB superfunds allow pension schemes to transfer their liabilities away from the original corporate sponsor, pooling assets under professional fiduciary management. The structure is particularly relevant for schemes that have improved their funding positions in recent years but still cannot afford a full insurer buy-out.

The scale of the opportunity is significant. Currently, four in five UK DB schemes are in surplus, with an aggregate funding level of 120% on a technical provisions basis. For many of these schemes, a run-on superfund represents a more accessible route to long-term security than a traditional buy-out.

TPT has secured capital to fund its first £1 billion of transactions, which it expects will be sufficient to support an initial pipeline of deals, subject to regulatory approval and market conditions.

Member Outcomes at the Core

The superfund has been designed with member protection as its primary objective. Distributions to members from surplus are planned from year five onwards, increasing to a majority of the surplus once risk capital has been returned to investors — a structure that aligns the interests of capital providers with long-term member outcomes.

The vehicle will operate under an independent Trustee Board with a dedicated full-time executive team. Once transferred, sponsoring employers are relieved of the ongoing administrative burden and costs associated with running standalone schemes, and reliance on the employer covenant falls away entirely.

Regulatory Backing and Broader Ambition

Both The Pensions Regulator (TPR) and the Department for Work and Pensions (DWP) have expressed support for the superfund model. TPR has published clear guidance on DB superfunds, providing trustees with a structured due diligence framework.

This latest announcement follows TPT's May disclosure of plans to develop a multi-employer CDC (Collective Defined Contribution) proposition, as well as the recent launch of its DC income-for-life product. Pending regulatory authorisations, TPT will operate six distinct consolidation vehicles, positioning it as one of the most diversified pension consolidation platforms in the UK market.

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."