TPT Retirement Solutions has launched a new collective defined contribution (CDC) modelling capability solution, powered by Moody’s PFaroe software.

The solution has been provided by new functionality within Moody’s range of PFaroe software tools, which provide portfolio analytics and risk management capabilities for defined benefit (DB) pension schemes, consultants, and investment managers.

It has been designed specifically for CDC schemes, building on Moody’s valuation system for DB schemes.

Alongside standard valuation modelling, the software includes forward-looking modelling to predict potential pension increases for CDC scheme members.

TPT said the tool’s ability to carry out asset liability modelling would provide important support to help CDC entrants come to market and manage their investment strategies.

It can be used by schemes’ in-house actuaries and investment managers, as well as external trustee advisers.

The launch comes amid TPT’s preparations for launching a multi-employer CDC scheme.

Pending regulatory authorisations, TPT said it would have six different consolidation vehicles.

“We are excited to partner with Moody’s to develop and deploy its new solution to help bring CDC pensions to the UK,” commented TPT Retirement Solutions head of CDC, Paul Eagles.

“As multi-employer CDC represents new territory for regulators, the industry and, most importantly, members, creating a robust scheme design is critical for the success of the scheme –modelling capabilities like this will play a vital role.”

Moody’s senior director – product manager, Simon Robinson, added: “We are committed to delivering sophisticated risk management solutions across the UK pensions landscape and are pleased to develop PFaroe for CDC schemes.

“The flexibility of our software and ability to connect with our clients will be important in meeting the evolving needs of CDC as it grows in the UK.”

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