I think I deserve a medal for lasting the full 83 minutes + of this blog but I did and though it didn’t talk about what I wanted to know more about (CDC and superfunds), it was good to hear about the set up at TPT.
What surprises me about TPT is that they are doing so much. They have revamped their DC master trust to allow members to get flex and fix style decumulation and will be bringing in a new approach where members will be able to be paid an income till they are 95 and then get a lump sum from what’s left over (typically to pay for care).
There is also an UMES CDC being launched in 2027 (subject to authorisation by TPR) and talk of a retirement CDC plan at the back of the decade. I am really pleased that TPT are doing this, there are very few organisations willing to be proprietor of a whole of life CDC and employers really need access to an authorised UMES CDC.
Then there is the DB business that is primarily legacy and a master trust for DB schemes who want to be under an umbrella.
Andy O’Regan , an actuarial strategist, runs the CDC side of things but sadly was not on the podcast with Phil Smith and Ruari Grant so we didn’t get much discussion of the topic , but we are promised more at a later stage.
I must say it would be interesting to hear not just from TPT but from the Church of England who will be launching a similar “UMES” CDC Scheme and the mysterious Orca, who are said to be launching a superfund for DB schemes.
What is clear is that TPT spend a lot of time with the Government discussing all these things and Ruari is the spokesperson, dealing with formal responses to Government while others get involved with matters more strategic to the TPT business.
It was interesting to hear from Ruari that he’s up and about , despite a crushing break of his leg which has laid him low. I saw him briefly in Edinburgh but too briefly to commiserate properly.
It was also to hear from Nico that he’d spoken to a number of DB schemes at the Pensions UK conference who are looking to launch a DC scheme within their DB trust to efficiently deliver surplus to members disadvantaged by not getting a DB pension. I wondered if any of these employers were considering running a single employer or UMES CDC scheme within the existing scheme. The surplus can be useful in offering the reserve that is needed for a CDC proprietor to get the scheme authorised.
The main subjects of the meeting surrounded VFM and the Size considerations DC plans must have in future. It is certainly ambitious for TPT to run a CDC scheme (not subject to size) , a DC master trust (subject to VFM and size) a Superfund , a DB master trust and an umbrella for existing DB schemes (which I didn’t quite work out).
But the lads clearly had time on their hands and the pod neatly fitted into the 90 minutes of the League Cup Final which I could watch with the sound turned down. Arsenal will now be able to focus on a smaller number of competitions, perhaps a lesson there for others?
