Leeds, December 2023 — DB schemes contemplating consolidation face the challenge of finding the ideal solution for their needs. Jonathan Jackaman, Head of Business Development at TPT, delves into the range of options available, regardless of where schemes find themselves on their endgame journey.
Following the Department for Work and Pensions’ (DWP) publication of its white paper on ‘protecting defined benefit pension schemes’ in 2018, the industry has witnessed the emergence of numerous products and services aimed at aiding trustees and sponsors in embracing consolidation.
While defined contribution (DC) schemes have become the norm for most UK employers, consolidation of DC arrangements is widespread. Moreover, over the past decade, many previously fragmented own-trust DC schemes have transitioned to a consolidated model.
Consolidation of DB pension schemes brings several challenges, from legal and regulatory compliance to effective communication with affected employees.
The success of consolidation in the DC sector is now a driving force behind inciting trustees and sponsors to evaluate how similar efficiencies and economies of scale could benefit their DB schemes. With a plethora of options available, there is likely a consolidation approach suitable for schemes at any stage of their journey.
TPT, through showcasing successful case studies, demonstrates its ability to facilitate smooth DB scheme consolidation for diverse organizations. These examples serve as testimonials to TPT’s proficiency in tailoring solutions to meet each client’s unique needs and challenges.
By consolidating some or all aspects of scheme management, significant time and cost savings can be achieved, along with improved quality and reduced burden on trustees, in some cases even eliminating it altogether.
According to Jonathan Jackaman, Head of Business Development at TPT, Every consolidation option offers different benefits. Finding the right approach for your scheme, sponsor, and members is crucial. In many instances, leveraging different consolidation options as you progress through your end-game journey could prove beneficial. For example, transitioning to a single provider for all services to address data and illiquid asset issues, then moving to a master trust, before finally securing members’ benefits through buyout.
In an era defined by inevitable change, organizations must partner with experts capable of guiding them through the intricate process of DB scheme consolidation. TPT’s expertise in legal compliance, risk management, employee communication, and operational efficiency positions them as a trusted ally for businesses navigating the complexities of pension scheme consolidation. As organizations strive for financial agility and employee satisfaction, TPT stands ready to pave the way for a seamless and successful transition.
For additional information on DB schemes and consolidation options, visit TPT’s website: [link to be provided later].
About TPT:
TPT is a leading provider of pension services, delivering innovative solutions for defined benefit pension schemes. Committed to helping trustees and sponsors navigate the evolving pension landscape, TPT offers expertise, support, and tailored solutions to meet their unique needs.
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