An unnamed defined benefit (DB) pension scheme has agreed to join Clara Pensions through its 'Small Schemes Offering', which will transfer more than 400 members and approximately £40m of assets into the Clara Pension Trust.
This is the second deal completed through Clara Pensions’ Small Schemes Offering, which is designed to allow smaller DB schemes to transfer into a pooled section of the Clara Pension Trust and share operating costs.
This deal will include an additional capital injection from Clara and is intended to support the scheme's eventual transition to an insurance buyout.
Clara confirmed that members will continue to receive their full pension entitlements following transfer.
This second transaction follows an agreement earlier this year with the Videndum DB Pension Scheme, that saw around 500 members and £43m in assets under management transferred to the Clara Pension Trust.
The consolidator said these transactions demonstrate how the superfund model can provide an endgame option for smaller pension schemes.
Commenting on the announcement, Clara Pensions chief transactions officer, Matt Wilmington, said: “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.”
Hymans Robertson head of alternative risk transfer solutions, Richard Wellard, described the transaction as "another important milestone in the evolution of the superfund market".
"While Clara’s new small schemes section was designed to bring together several smaller schemes, this is the first time a second scheme has joined an existing section, demonstrating that the model can work in practice and giving trustees greater confidence in the process," he continued.
"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.
"As the market continues to develop, we expect more smaller schemes to explore this route as a practical endgame option that can enhance member outcomes while helping sponsors move closer to resolving their pension obligations."
