TPT launches new DB superfund

Commenting on today’s announcement by TPT on the launch of a new DB superfund, Richard Wellard, Head of Alternative Risk Transfer, Hymans Robertson, says:

“It’s great to see TPT’s announcement today that it intends to develop a new DB superfund, building on the other consolidation options it already offers. This is an exciting development for DB schemes considering their appropriate end game. It offers schemes further choice in finding the endgame that best aligns with their objectives.

“We welcome TPT’s plans to operate a run-on superfund and give material member augmentations over time. This differs to other superfund transactions to date, which have acted as a bridge to buy-out, so it is good to see the innovation in the development of the superfund market. Clara-Pensions led the way in creating innovative solutions for schemes – including their “connected covenant” structure with the Church Mission Society. It’s clear to see that TPT aim to continue this trend with the member augmentation model and we anticipate further innovation in this space will continue as the superfund market goes from strength to strength.”

“With the TPT superfund hoping to be open for business soon, we expect the prospect of using future surplus for member augmentations will be interesting and appealing to a wide variety of pension schemes. This will also provide healthy competition into the superfund market. It’ll be more important than ever for schemes and sponsors to fully understand the range of options available to them in a fast-changing landscape.”

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