Clara Pensions has signed the UKu2019s first superfund pension deal after reaching an agreement with the trustees of the Sears Retail Pension Scheme.
Under the agreement 9,600 members of Sears’ pension fund will be transferred to Clara Pensions after clearance was agreed by the UKu2019s Pensions Regulator (TPR). The transfer process is expected to start this month.u00a0
The deal includes an additional u00a330m of ring-fenced funding to support the pension scheme in the absence of an ongoing employer covenant.u00a0
The superfund concept was introduced in 2018 and Clara Pensions was the first entity to receive approval from TPR.
Superfunds are analogous to insurance buyouts but are subject to less onerous capital requirements and regulation and are intended for pension schemes which canu2019t afford a full buyout, or as an intermediary step towards an insurance solution.u00a0
In comments released when the deal was announced, the chair of Sears pension scheme said that the deal with Clara was intended as a move towards a full insurance buyout at some point in the future.
Isio will remain as the Sears pension fundu2019s administrator.u00a0