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The Department for Work and Pensions has backed a pension system overhaul that could give millions of savers bonus payments from surplus cash.

The Pension Schemes Bill will tackle schemes delivering poor returns for savers, combine smaller pension pots, and create bigger and better pension funds. And savers could one day see bonus payments.

TPT Retirement Solutions, a mid-sized provider that manages £11.1bn of pension assets, said on Thursday it had secured funding to launch a DB scheme consolidator — or superfund — to complete £1bn of transactions. The TPT proposal would allow pension schemes to “run on”, rather than acting as a bridge to a buyout, and enable profits to be shared.

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