Marelli UK is transferring six pension schemes to Clara, the defined benefit pension superfund. Over 3,300 members across six schemes, ranging in size from approximately £1m to £125m, will transfer together into a single section of the Clara Pension Trust under one master agreement.
As with Clara’s previous transactions, additional capital will be provided by Clara to enhance the security of members’ benefits. Members will continue to receive their pension entitlements and will begin their journey towards an insured buy-out following transfer.
“We are very pleased to have secured a successful outcome for the schemes that achieves both sponsor and pension scheme objectives, and to have done so quickly and efficiently. Our thanks go to our core team of Lane Clark & Peacock, Sackers and Squire Patton Boggs, who have helped us deliver this result for our members. We also recognise the support of the sponsor and its advisers throughout the process, and the collaborative approach taken by Clara. Ultimately, this is about providing greater security for our members and pensioners, and we are pleased to have achieved that,” said Alastair Meeks, Client Director at Zedra Governance.
“This has been a particularly innovative transaction because of both the number and range of schemes involved. Bringing together the six schemes has enabled the members to benefit from both the additional security provided by the Clara solution and significant economies of scale. Scale is a major part of what makes this possible. Half of these schemes would be too small to access a superfund, but by bringing them together we can provide all members with access to the same enhanced security and clear journey towards insured buyout. It also demonstrates the flexibility and speed of execution that Clara can provide alongside wider corporate activity. We are very pleased to have worked with the sponsor, trustees and advisers to deliver a solution across all six schemes within a demanding timetable,” added Matt Wilmington, Chief Transactions Officer at Clara Pensions.
Marelli UK was advised by Burges Salmon and BDO; the trustee of the schemes was Zedra who were advised by Sackers, Squire Patton Boggs and LCP. Clara received legal advice from Cameron McKenna Nabarro Olswang, and the Clara Trustee received advice from Eversheds Sutherland. Hymans Robertson provided scheme actuarial services to Clara.
“This first-of-its-kind transfer of multiple schemes demonstrates what can be achieved when all parties work together to navigate a complex transaction. Meeting a challenging timeline required multidisciplinary expertise and a solution-focused approach, underpinned by close collaboration across the trustee, sponsor, Clara and all advisers,” said Sam Jenkins, Partner at LCP and lead risk transfer adviser to the trustee.
