Clara-Pensions has achieved a groundbreaking milestone by securing its first conventional employer deal, assuming control of the Wates defined benefit pension scheme, which serves 1,500 members. The family-owned construction giant Wates has agreed to inject £19 million as a final settlement to transfer its pension obligations.
The scheme, currently holding assets of £210 million with an approximate £10 million deficit, will now be managed by Clara-Pensions. The superfund aims to enhance the scheme’s financial position, targeting a potential insurance company buyout within five to ten years.
As Britain’s sole regulatory-approved superfund, Clara-Pensions operates as an intermediary solution for scheme sponsors seeking to relinquish their pension responsibilities without committing to a complete buyout. The organisation has previously managed schemes from defunct retailers Debenhams and Sears.
Clara’s portfolio now encompasses £1.2 billion in assets under management, with active discussions underway for potential new corporate clients representing an additional £5 billion in business opportunities. The US investment fund Sixth Street provides financial backing for Clara, which was established in 2017.
The deal marks a significant development in the UK’s pension landscape, despite initial opposition from the Bank of England regarding member protection levels. While Clara currently operates under interim regulations, permanent legislation is expected to be introduced next year.
Should Clara face financial difficulties, schemes under its management would transfer to the Pension Protection Fund if their financial health proves insufficient. This safety net ensures members receive most, though not all, of their promised pensions.
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