Clara-Pensions ("Clara") has announced the UK's first pension superfund transaction. The transaction represents an exciting development in pension scheme management, which may have significant implications for the industry as a whole.
Sears Retail Pension Scheme', which manages around £600 million in assets, and their 9,600 members, will become the first to enter a UK pension Superfund. As part of the transaction, Clara will provide £30 million of ring-fenced capital to support the Scheme's journey to buy-out and enhance member security. The Sears trustees have informed the scheme's members of the intention to transfer and the transaction is expected to complete at the end of November.
It is important that the industry continues to explore genuine alternatives to buy-out. The transaction, which received The Pensions Regulator's approval on Friday 3 November, represents a significant step in developing such alternatives and showcases the potential of superfunds for improving member security for schemes which may not be able to afford insurance in the short to medium-term.
Our Pensions Team recognise the importance of finding alternative ways to enhance member security and are working extensively on developing alternatives to buy-out. Our work includes Aspinall, Clara and exploring other options for managing buy-out alternatives. If you would like to explore this topic further, please do contact our Pensions Team.