TPT’s Superfund Trustee Board has appointed four external organisations as advisers for the recently announced Defined Benefit (DB) Superfund.
The Trustee Board has appointed Gowling WLG to provide legal advice and Mercer as scheme actuary. In addition, LCP will provide independent investment oversight and EY will be the Superfund’s risk advisor. These firms will play an important step in the development and ongoing management of TPT’s Superfund solution, as well as supporting in the process of regulatory assessment.
TPT’s Superfund proposition, which is uniquely designed to run-on, will broaden the company’s range of endgame solutions available to both employers and trustees. With many schemes experiencing improved funding levels over recent years, the superfund proposition represents a viable route for those schemes that still fall short of full funding on a buyout 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 growth ambitions for the UK economy.
Gowling WLG is a leading international law firm with more than 1,400 legal professionals spanning 19 cities worldwide. It will be offering legal advice to the scheme’s Trustee Board.
Jason Coates at Gowling WLG said: “We’re proud to have been selected to support the Trustee Board through the launch of this innovative Superfund with TPT Retirement Solutions. This is a significant development in the UK pensions landscape. TPT’s run-on Superfund model provides a compelling alternative for sponsors and trustees who want to secure member benefits and ensure robust governance, whilst also preserving the possibility of upside for members.”
Michael Kelly, Funding and Benefits Partner at Mercer, said: “We are delighted to have secured this appointment. We are looking forward to continuing to work with TPT and the Superfund Trustee Board to deliver a comprehensive service to this innovative industry development.”
James Fermont at LCP, said: “The unique investment requirements for a DB Superfund designed for run-on are complex. We look forward to working with the Superfund Trustee Board alongside TPT’s investment team to deliver an investment strategy that supports its members and delivers a first-class product for savers.”
Jane Evans at EY, said: “We are delighted to support the Trustee Board of TPT’s Superfund in bringing the new Superfund to market. Our knowledge of the UK regulatory landscape and how to manage change will be highly valuable to the Trustee Board as TPT introduces this innovative solution to a fast-moving, ever evolving and often volatile marketplace.”
Nadeem Ladha, Chair of TPT’s Superfund Trustee board, said: “I am pleased the Board is partnering with four market-leading service providers to support the trustees in ensure the Superfund offers a market leading product for members, and ceding employers and trustees alike. This will ensure we are able to both collaborate with and challenge TPT appropriately.”
Nicholas Clapp, Chief Commercial Officer at TPT Retirement Solutions, said: “At TPT, we believe consolidation vehicles can fundamentally generate better outcomes for members. Our Superfund will benefit from economies of scale and, with the support of these best-in-class advisers, can achieve value for money and support our ambition to make pension schemes perform better for everyone.”
Source