Clara takes on £40m scheme
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The trustees of an unnamed £40m pension fund have moved more than 400 members and the scheme's assets to Clara Pensions through the consolidator's Small Schemes Offering.
Under the terms, Clara will inject additional capital to improve the security of members’ benefits ahead of an eventual buyout.
The transaction is the second that has been made through Clara’s Small Schemes Offering, through which smaller schemes transfer into a pooled section of the Clara Pension Trust, where the costs of running the section are shared among multiple schemes. The first such deal was made by Clara earlier this year.
“Smaller schemes have historically had fewer endgame options available to them. By bringing schemes together within a pooled section, we can make the benefits of Clara’s model accessible to more members while maintaining the same focus on security and a clear path to buyout," said chief transaction officer Matt Wilmington.
The fact a further scheme has joined an existing section in Clara shows the model works in practice and gives trustees confidence in the process, said Richard Wellard, who heads up alternative risk transfer solutions at Hymans Robertson.
“For schemes that may previously have viewed consolidation as out of reach, it provides compelling evidence that innovative structures can make these endgame solutions commercially viable for a wider range of schemes,” he argued.
