Key Takeaways
- • TPT Retirement Solutions has applied to The Pensions Regulator for approval to launch what would be the UK's first multi-employer collective defined contribution (CDC) plan.
- • More than 10 employers representing more than 20,000 members have expressed interest in joining the proposed CDC plan, according to TPT.
- • TPT managed £11.4 billion ($15.36 billion) in assets for 490,000 members across the UK as of September 2025.
- • Under CDC, assets are pooled and investment and longevity risk are shared, with the aim of providing lifetime income rather than individual pension pots.
- • To date, the UK has only single-employer CDC plans, under a framework introduced by the Pension Schemes Act 2021.
Summary
UK pension service provider TPT Retirement Solutions announced on Wednesday that it has submitted an application to The Pensions Regulator seeking approval to launch what would become the country's first multi-employer collective defined contribution offering. The proposal would pool member assets rather than maintaining separate retirement accounts for each member, with investment risk and longevity risk shared across participants. The stated objective is to provide all members with a source of lifetime income.
According to TPT, more than 10 employers representing over 20,000 members have expressed interest in joining the plan. TPT manages £11.4 billion ($15.36 billion) in assets for 490,000 members across the UK, as of September 2025.
CDC proponents argue that the structure allows a fund to keep assets invested in growth-oriented holdings for longer periods, a point of relevance as the UK government, under the Mansion House Accord, seeks to increase domestic pension allocations to private-market assets. The UK's defined contribution market is dominated by master trusts such as Nest, The People's Pension, Aviva and Legal & General, which typically use individual account structures where members bear investment risk personally. According to Marsh, the Netherlands has the most established CDC retirement system, while the UK's CDC framework, introduced under the Pension Schemes Act 2021, has so far produced only single-employer plans.
TPT CEO David Lane said submitting the application is a major milestone for the firm and for collective pensions in the UK. "CDC is not intended to replace DB and traditional DC, but can fill an important gap between them, giving employers greater choice and members the potential for a higher and more predictable retirement income," Lane said in a statement.
According to TPT, more than 10 employers representing over 20,000 members have expressed interest in joining the plan. TPT manages £11.4 billion ($15.36 billion) in assets for 490,000 members across the UK, as of September 2025.
CDC proponents argue that the structure allows a fund to keep assets invested in growth-oriented holdings for longer periods, a point of relevance as the UK government, under the Mansion House Accord, seeks to increase domestic pension allocations to private-market assets. The UK's defined contribution market is dominated by master trusts such as Nest, The People's Pension, Aviva and Legal & General, which typically use individual account structures where members bear investment risk personally. According to Marsh, the Netherlands has the most established CDC retirement system, while the UK's CDC framework, introduced under the Pension Schemes Act 2021, has so far produced only single-employer plans.
TPT CEO David Lane said submitting the application is a major milestone for the firm and for collective pensions in the UK. "CDC is not intended to replace DB and traditional DC, but can fill an important gap between them, giving employers greater choice and members the potential for a higher and more predictable retirement income," Lane said in a statement.
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