TPT Retirement Solutions has announced plans to design and launch a new multi-employer Collective Defined Contribution (CDC) pension scheme, marking a significant development in the evolution of workplace pensions in the UK. The scheme is currently in development, with authorisation targeted for completion by the end of 2026.
The announcement follows confirmation from the Minister for Pensions that legislation enabling multi-employer CDC schemes will be introduced after Parliament’s Summer Recess. Against this backdrop of regulatory change, TPT has become the first pension provider to publicly declare its intention to enter the multi-employer CDC market, positioning itself at the forefront of a potentially transformative shift in retirement provision.
Legislative Change Creates Momentum for CDC Expansion
CDC pension schemes have gained increased attention in recent years as policymakers and industry stakeholders explore alternatives to traditional Defined Benefit (DB) and Defined Contribution (DC) models. While single-employer CDC schemes are already permitted under existing legislation, the forthcoming legal framework will enable multi-employer CDC schemes for the first time.
This development opens the door for smaller and mid-sized employers—who may not have the scale or resources to run standalone schemes—to access CDC arrangements. TPT’s early commitment signals confidence in the model’s viability and reflects broader industry momentum toward solutions that balance sustainability, predictability, and member outcomes.
A Whole-of-Life, Multi-Employer CDC Proposition
TPT’s proposed scheme will be structured as a multi-employer, whole-of-life CDC pension. It is designed to extend the organisation’s existing consolidation solutions while providing a new option for employers seeking predictable pension costs and long-term retirement income for employees.
In parallel with the multi-employer scheme, TPT also plans to develop bespoke single-employer CDC schemes aimed at larger organisations with more specific requirements. Together, these offerings will complement TPT’s established Defined Benefit and Defined Contribution arrangements, creating a broad spectrum of pension solutions under one provider.
This integrated approach reflects a growing recognition that no single pension model suits all employers or members, particularly as workforce demographics, labour mobility, and retirement expectations continue to evolve.
Combining Features of DB and DC Schemes
CDC schemes occupy a hybrid position between DB and DC models. For members, they aim to deliver an income for life, similar to a DB pension, but without the guarantees that place long-term funding risk on employers. Instead, benefits are paid from a collective fund, with income levels adjusted over time based on investment performance and longevity experience.
For employers, CDC schemes offer a level of cost certainty more commonly associated with DC arrangements. Contributions are fixed, removing the balance-sheet volatility often linked to DB schemes, while still enabling participation in a collective, professionally managed investment strategy.
This balance of shared risk and pooled investment is increasingly viewed as a way to improve retirement outcomes without reintroducing the funding pressures that led many employers to close DB schemes in previous decades.
Leveraging Experience in Multi-Employer Pension Management
TPT brings substantial experience to the development of a CDC scheme. The organisation currently administers DB and DC Master Trusts for approximately 470,000 members and has decades of experience managing large-scale, multi-employer pension arrangements.
This operational background is expected to play a key role in navigating the governance, administration, and communication challenges associated with CDC schemes. TPT has indicated that the design process is being informed by extensive engagement with industry stakeholders, reflecting the complexity of introducing a new pension model at scale.
The scheme will sit alongside TPT’s existing propositions, enabling employers and members to access retirement income solutions across DB, DC, and CDC frameworks within a single provider ecosystem.
Supporting Employers and Workforce Retention
For employers, the introduction of a multi-employer CDC option could add a new dimension to reward and retention strategies. As competition for skilled talent intensifies, particularly in sectors facing labour shortages, pension provision remains an important differentiator.
Andy O’Regan, Chief Client Strategy Officer at TPT Retirement Solutions, said:
“We are excited to be at the forefront of pension innovation in the UK. Making CDC accessible to all employers, regardless of size, is a significant step forward for the industry. For interested employers, offering a CDC scheme could become a powerful tool for talent attraction and retention.”
The ability to offer a lifetime income stream, without the financial unpredictability associated with DB schemes, may appeal to organisations seeking to enhance long-term employee engagement.
Industry Confidence in CDC’s Role
Senior leadership at TPT has emphasised the broader strategic importance of CDC within the pensions landscape. David Lane, Chief Executive of TPT Retirement Solutions, said:
“The pensions industry is at a point where innovation is critical. We believe there is a clear opportunity for CDC schemes to fill a gap in the pensions market and could be the right solution for many employers and scheme members. Our track record in managing large-scale, multi-employer pension schemes means we are well-placed to lead this transformation.”
Government signals have also reinforced confidence in the model’s future. Minister for Pensions, Torsten Bell MP, said:
“I am delighted to see TPT confirming plans for a multi-employer CDC scheme, just days after I set out the timeline for new legislation to enable these new types of pension schemes.”
Looking Ahead
With legislative change on the horizon and growing industry interest, CDC schemes are moving from concept to practical implementation. TPT’s early commitment positions it as a key participant in shaping how multi-employer CDC pensions develop in the UK.
If successfully authorised and adopted, the scheme could broaden access to collective retirement income solutions and play a meaningful role in addressing long-standing challenges around adequacy, predictability, and sustainability in workplace pensions.
Peyman Khosravani is a seasoned expert in blockchain, digital transformation, and emerging technologies, with a strong focus on innovation in finance, business, and marketing. With a robust background in blockchain and decentralized finance (DeFi), Peyman has successfully guided global organizations in refining digital strategies and optimizing data-driven decision-making. His work emphasizes leveraging technology for societal impact, focusing on fairness, justice, and transparency. A passionate advocate for the transformative power of digital tools, Peyman’s expertise spans across helping startups and established businesses navigate digital landscapes, drive growth, and stay ahead of industry trends. His insights into analytics and communication empower companies to effectively connect with customers and harness data to fuel their success in an ever-evolving digital world.
