Entrepreneurship February 25, 2026 0 Comments

How TPT’s Bold DB Superfund Play Could Rewrite the Rules of Consolidation—and What It Means for Your Portfolio

Ever wonder what happens when your pension isn’t quite enough to buy that dream retirement lifestyle? Isn’t it wild that most UK Defined Benefit pension schemes are sitting on surpluses yet still struggle to afford a full insurance buyout? Enter TPT Retirement Solutions with a game-changing twist: a new DB superfund designed not to cash out and run, but to run-on—imagine a pension lifeline that keeps growing instead of selling off. It’s like giving your pension a second wind, pooling resources, spreading risks, and having the kind of capital buffers that could turn the tables on traditional pension consolidation. This isn’t just a small shift—it’s a regulatory-backed game plan supported by the powers that be, ready to shake up how you think about pensions. Curious how this bold move could open doors for schemes squeezed out of the buyout market? Stick around and find out how TPT is paving a path for smarter, steadier retirement outcomes. LEARN MORE

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Key Takeaways

TPT Retirement Solutions plans to launch a new Defined Benefit (DB) superfund designed to support long-term run-on rather than buy out.
The proposed superfund expands consolidation options for UK pension schemes that cannot afford a full insurance buy out.
Support from The Pensions Regulator and the Department for Work and Pensions signals regulatory backing for superfund development.
TPT has secured capital to fund the first £1bn of transactions, subject to regulatory approval and market conditions.
The superfund model pools schemes, spreads risk, and holds additional capital buffers to enhance the likelihood that members receive full benefits.

TPT Retirement Solutions (TPT), one of the UK’s leading workplace pensions providers, has today announced its intention to launch a new Defined Benefit (DB) superfund designed to support run-on.

Both The Pensions Regulator (TPR) and the Department for Work and Pensions (DWP) have expressed their support for superfunds, which offer schemes an alternative endgame solution.

Superfunds are designed to take on the obligation of meeting the liabilities of corporate DB pension schemes from their original sponsors. They are particularly suitable for schemes that don’t have large surplus funding positions and cannot afford alternatives such as a full buy out with an insurer.

Currently, there is only one superfund that has been assessed by TPR in the UK market, and it targets buy out as its end goal. TPT’s superfund proposition, designed to run-on, will broaden the range of endgame solutions available to employers and trustees. TPT has secured capital to fund the first £1bn of transactions which it anticipates will be sufficient to support a number of deals subject to scale, regulatory approval and market conditions.

Pension superfunds present a huge opportunity for choice in the broader consolidation market. With many schemes experiencing improved funding levels over recent years, superfunds represent a viable route for those schemes that still fall short of full funding on a buy out basis. Currently, 4 in 5 UK DB schemes are in surplus with an aggregate funding level of 120% on a technical provisions basis. Superfunds that run-on are well placed to invest in growth assets, supporting the Government’s ambitions for the UK economy.

TPT has developed its new superfund with members’ interests at the core. Its focus will be to increase the likelihood that members receive full benefits, with distributions to members from the surplus from year five onwards, increasing to majority of surplus once the risk capital has been returned to the investor.

By pooling schemes together, spreading the risk and putting experienced fiduciary managers at the helm, pension superfunds allow sponsors to step away from the ongoing costs and administrative burden involved with running individual schemes.

Superfunds are required to hold additional capital over and above the scheme’s assets, to provide a buffer that trustees would not have access to in a standalone scheme. Once a scheme transfers to a superfund, responsibility for the scheme no longer sits with the ceding trustee and reliance on the employer covenant falls away. The intent is to ensure an increased likelihood that members receive full benefits. TPT’s superfund will be established with an independent Trustee Board and full-time executive team.

TPT’s planned superfund follows the May announcement of its intention to develop a multi-employer CDC proposition, and the recent launch of its DC income-for-life proposition. Pending regulatory authorisations, TPT will have six different consolidation vehicles, making it a clear industry leader and standout pioneer of pension solution development.

TPR has outlined clear guidance on DB superfunds, giving trustees confidence in the due diligence process.

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.”

FAQs

What is a Defined Benefit (DB) superfund?

A DB superfund is a consolidation vehicle that assumes responsibility for corporate pension scheme liabilities from their original sponsors. It pools assets and adds capital buffers to increase security for members’ benefits.

How does TPT’s proposed superfund differ from existing options?

TPT’s superfund is designed to run-on rather than act as a bridge to buy out with an insurer. This approach broadens endgame solutions for schemes that may not meet full buy out funding thresholds.

Why are superfunds gaining attention in the UK?

Many UK DB schemes have improved funding levels but still fall short of full buy out affordability. Superfunds offer an alternative that combines consolidation, professional management, and capital backing.

What protections are in place for members?

Superfunds are required to hold additional capital above scheme assets to act as a financial buffer. TPT’s model also includes an independent Trustee Board and executive team to oversee governance and member interests.

How does this fit into TPT’s broader strategy?

The planned DB superfund complements TPT’s previously announced multi-employer CDC and DC income-for-life propositions. Together, these vehicles position TPT as a leading provider of diverse pension consolidation solutions, pending regulatory authorisation.