TPT Superfund will bring more competition, innovation and capacity in a rapidly growing market

Following the announcement that TPT Superfund has successfully concluded its TPR assessment process, Laura Amin, Head of DB Consolidation, commented:

“This is another landmark day for the superfund market with TPT announcing the first run-on superfund to pass TPR assessment, offering an alternative option to Clara’s bridge to buyout model for schemes considering a superfund transfer.

“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.

“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.

“This expansion of the provider landscape will create a more competitive market which may result in improvements in pricing and we expect to see superfund providers looking to differentiate themselves on non-price factors such as member experience.

“It will be fascinating to see how further innovation in the superfund and wider endgame market – for example in value share propositions - may further extend the range of endgame options available for sponsors and trustees and deliver improved member outcomes.

“Innovation is also driving propositions in the bulk annuity market and newer solutions like sponsor swaps, and the upcoming surplus regulations mean new variants of run-on frameworks will be agreed. There has never been such choice and opportunity for pension schemes in the UK.”