TPT will launch multi-employer CDC
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TPT Retirement Solutions is first out of the box to say it will launch a collective defined contribution scheme for multiple employers, after the pensions minister recently confirmed legislation to enable such schemes will be laid in autumn.
The master trust and defined benefit provider said it plans to complete authorisation for a multi-employer whole-of-life CDC scheme by the end of 2026. In parallel to designing the multi-employer scheme, TPT will develop “bespoke single-employer CDC schemes for larger businesses seeking tailored solutions”.
Pensions minister Torsten Bell welcomed the news: “I am delighted to see TPT confirming plans for a multi-employer CDC scheme, just days after I set out the timeline for new legislation to enable these new types of pension schemes. These schemes are set to be an important, innovative addition to the UK pensions’ landscape with the potential to improve the pension outcomes for millions of savers.”
Making CDC accessible to all employers regardless of size is “a significant step forward for the industry”, said TPT’s chief client strategy officer, Andy O’Regan. “For interested employers, offering a CDC scheme could become a powerful tool for talent attraction and retention.”
Chief executive David Lane added: “The pensions industry is at a point where innovation is critical. We believe there is a clear opportunity for CDC schemes to fill a gap in the pensions market and could be the right solution for many employers and scheme members.”
Master trusts have been lobbying for the government to extend the current legislation, which only allows single-employer CDC, to multi-employer schemes. Last month, the pensions minister confirmed that regulations will be laid in autumn. Bell also said he wants to deliver decumulation-only CDC but did not give a timeline for this.
Legislation for multi-employer CDC may need to wait for other initiatives to progress first, such as the Pensions Investment Review, early access to DB surplus, DB superfunds and a new value for money framework for DC. Two other large projects – automatic consolidation of small pots and pensions dashboards – are also ongoing. A regulatory code for multi-employer CDC will not be laid until after July 2026.
The master trust and defined benefit provider said it plans to complete authorisation for a multi-employer whole-of-life CDC scheme by the end of 2026. In parallel to designing the multi-employer scheme, TPT will develop “bespoke single-employer CDC schemes for larger businesses seeking tailored solutions”.
Pensions minister Torsten Bell welcomed the news: “I am delighted to see TPT confirming plans for a multi-employer CDC scheme, just days after I set out the timeline for new legislation to enable these new types of pension schemes. These schemes are set to be an important, innovative addition to the UK pensions’ landscape with the potential to improve the pension outcomes for millions of savers.”
Making CDC accessible to all employers regardless of size is “a significant step forward for the industry”, said TPT’s chief client strategy officer, Andy O’Regan. “For interested employers, offering a CDC scheme could become a powerful tool for talent attraction and retention.”
Chief executive David Lane added: “The pensions industry is at a point where innovation is critical. We believe there is a clear opportunity for CDC schemes to fill a gap in the pensions market and could be the right solution for many employers and scheme members.”
Master trusts have been lobbying for the government to extend the current legislation, which only allows single-employer CDC, to multi-employer schemes. Last month, the pensions minister confirmed that regulations will be laid in autumn. Bell also said he wants to deliver decumulation-only CDC but did not give a timeline for this.
Legislation for multi-employer CDC may need to wait for other initiatives to progress first, such as the Pensions Investment Review, early access to DB surplus, DB superfunds and a new value for money framework for DC. Two other large projects – automatic consolidation of small pots and pensions dashboards – are also ongoing. A regulatory code for multi-employer CDC will not be laid until after July 2026.
Will multi-employer CDC be a must-have for master trusts?
