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Leeds, December 2023 — For DB schemes considering consolidation, it can be challenging to establish which solution is the best fit for your scheme. Jonathan Jackaman, Head of Business Development at TPT, explores the options now available, for wherever you are on your endgame journey.
Since the Department for Work and Pensions (DWP) published its white paper on ‘protecting defined benefit pension schemes’ back in 2018, a variety of new products and services have been developed across the industry – all designed to help trustees and sponsors embrace consolidation.
Outside of the public sector, the vast majority of UK employers now offer defined contribution (DC) schemes for current employees. Consolidated DC arrangements are very much ‘the norm’ for newer schemes. And over the past decade, many previously ‘unbundled’ own-trust DC schemes have also moved to a consolidated model.
The success of consolidation in DC is likely to be a key driver in getting trustees and sponsors to consider how they can benefit from similar efficiencies and economies of scale on the DB side. And, with the plethora of options now available for DB schemes, there is likely to be a consolidation approach that could benefit your scheme, wherever you are on your journey.
Consolidating some or all elements of managing your scheme can create significant time and cost savings while improving quality and reducing (or, in some cases, removing entirely) the burden on your trustees.
Jonathan Jackaman, Head of Business Development at TPT, stated, “Each consolidation option offers different benefits. As with most things, it all comes down to finding the right approach for your scheme, sponsor, and members. In many cases, you may find it beneficial to use different consolidation options as you progress through your end-game journey. For example, moving to a single provider for all services to resolve both data and illiquid asset issues, then to a master trust, before finally securing members’ benefits through buyout”.
For more information on DB schemes and consolidation options, visit https://www.tpt.org.uk/news-insights/consolidation-options-for-db-pension-schemes/.
About TPT:
TPT is a leading provider of pension services, offering innovative solutions for defined benefit pension schemes. With a commitment to helping trustees and sponsors navigate the evolving pension landscape, TPT provides expertise, support, and tailored solutions to meet their unique needs.
