TPT Retirement Solutions’ run-on defined benefit (DB) superfund had cleared The Pensions Regulator’s (TPR) assessment process, enabling the provider to bring it to market.

The TPT Retirement Solutions Superfund is designed to run on, using a long-term and diversified investment approach to create additional value to be shared with members.

TPT said it had secured capital to fund the first £1bn-£1.5bn of transactions and is in active discussions with prospective schemes.

This capital is expected to support several transactions, subject to scale, approval, and market conditions.

The superfund has a built-in surplus-sharing mechanism, with its long-term approach aiming to provide access to a wider range of investment opportunities, economies of scale, and greater flexibility.

TPT said the successful outcome of the assessment process demonstrated that its proposition had met TPR’s requirements to protect members' benefits and support their effective governance.

Research from TPT showed that 57 per cent of trustees were considering superfunds as an endgame option for their scheme.

The provider has also announced its intention to launch the UK’s first multi-employer collective defined contribution proposition, meaning TPT will have six different consolidation vehicles, subject to regulatory authorisations.

"This is a landmark moment for TPT and one of the most significant milestones in our history,” commented TPT Retirement Solutions CEO, David Lane.

“Achieving a successful outcome through TPR's assessment process enables us to bring an innovative new superfund to the market, expanding choice for trustees and sponsors.

“We are incredibly proud of the proposition we've built and the opportunity it creates to deliver long-term security and value for members.”

Aretas Trustees partner and TPT Superfund Trustee Board chair, Nadeem Ladha, added: “I am delighted that TPR has positively assessed the superfund following a rigorous and robust submission process.

“It has been a privilege to work alongside such a high-calibre trustee board throughout the pre-assessment and assessment process.

“Our focus now, as trustees, is on the future and, above all, on members. We look forward to working with TPT to provide a secure long-term home for DB pension schemes, while giving members the opportunity to share in the value created over time.”

LCP head of DB consolidation, Laura Amin, said the announcement was “another landmark day” for the superfund market, marking the first run-on superfund to pass TPR assessment.

“Trustees and sponsors will now be comparing and contrasting Clara and TPT superfund across a range of factors, and it will be interesting to see how trustees and sponsors weigh up the different elements of the two models – including TPT superfund’s proposed surplus-sharing mechanism with members,” she continued.

“Further expansion in the provider landscape is expected with TPR having confirmed there is another superfund in assessment with the expectation of a further provider shortly to enter the assessment process.

“It is understood that these providers are also operating run-on models and so we could have three run-on superfunds having passed TPR assessment by the end of Q1 next year.”

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