TPT Retirement Solutions has applied for authorisation from The Pensions Regulator (TPR) to launch a multi-employer collective defined contribution (CDC) pension scheme, the first provider to do so.

Upon approval, the TPT Collective Pension Scheme will look to become the UK’s first open-market collective pension scheme, and will be available to employers of various sizes and sectors.

TPT said more than 10 employers representing over 20,000 members had expressed interest in joining the scheme.

The scheme is a whole-of-life CDC scheme, with members participating in the collective arrangement throughout the retirement journey, saving into a pooled fund in accumulation before receiving an income in retirement.

As TPT completed TPR’s superfund assessment process in October, it will offer employers six different consolidation vehicles if it receives approval to launch its multi-employer CDC offering.

TPT said its CDC scheme had been designed to complement and leverage its existing capabilities and scale across defined benefit and DC pensions.

“Submitting our application is a major milestone for TPT and for the development of collective pensions in the UK,” commented TPT Retirement Solutions CEO, David Lane.

“The introduction of CDC will enable us to expand the breadth with which TPT is able to deliver secure retirement income for our members.

“CDC is not intended to replace DB and traditional DC, but can fill an important gap between them, giving employers greater choice and members the potential for a higher and more predictable retirement income.”

Pensions Minister, Torsten Bell, added: “Too many people reach retirement unsure whether their savings will stretch far enough.

“CDC schemes offer a different way forward, one where the ups and downs of the market are shared across the group, not shouldered alone, giving people a more predictable income to rely on in later life.

"This is just one part of our broader drive to reform pensions so they work harder for savers, cutting costs, improving returns, and making sure the system delivers the security people have earned after a lifetime of work."

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