The Pensions Trust Growth Plan

Published by Chris Hawley on

The Growth Plan (GP) is a multi-employer pension arrangement offered by The Pensions Trust (TPT), generally for the charitable and not-for-profit sectors. The GP has several sections or ‘Series’ that have been established over time, each offering a different type of pension benefit.

Series 1 and 2 of the GP are defined benefit arrangements. Series 4 of the GP is a money purchase arrangement.

The positon with Series 3 is not as clear – the benefits provided in exchange for the contributions paid to Series 3 were originally intended to be ‘money purchase’ in nature. However, Series 3 includes a capital guarantee that the fund at retirement shall not be less than the contributions paid. A recent change to the legal definition of ‘money purchase’ by the Department of Work and Pensions means that Series 3 is treated as money purchase prior to 24 July 2014, but after this date Series 3 is instead treated as defined benefit.

Our latest briefing note looks at the Series, explains the change in Series 3, what effect this will have on employers and what employers can do to minimise the impact.