TPR names first DB superfund to meet its expectation to protect savers
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The Pensions Regulator has named Clara-Pensions as the first new defined benefit consolidator to have met its standards of governance and administration, and has added the firm to a new online list.
The list includes any superfund which has been assessed by TPR and which has demonstrated that it meets criteria including good governance, being run by fit and proper people and that it is backed by adequate capital.
"We welcome the first addition to our online list of DB superfunds. The list shows where superfunds have met our expectations and is a vital tool for trustees and employers who may be considering transferring to such a scheme," said TPR's executive director of frontline regulation, Nicola Parish.
TPR launched its interim regime for superfunds and other new models in June 2020, ahead of proposed government legislation. In October 2020, TPR then published guidance for trustees and employers considering a transfer to a superfund.
Parish said that customers of a superfund on the list can have the confidence that the scheme has been through a rigorous assessment process to show they are fit for purpose.
"It is vital however, that trustees and employers still carry out their own thorough due diligence to ensure they are confident a superfund is the right option for their particular scheme and members. We expect employers considering a superfund to come to us for clearance,” she said.
The list includes any superfund which has been assessed by TPR and which has demonstrated that it meets criteria including good governance, being run by fit and proper people and that it is backed by adequate capital.
"We welcome the first addition to our online list of DB superfunds. The list shows where superfunds have met our expectations and is a vital tool for trustees and employers who may be considering transferring to such a scheme," said TPR's executive director of frontline regulation, Nicola Parish.
TPR launched its interim regime for superfunds and other new models in June 2020, ahead of proposed government legislation. In October 2020, TPR then published guidance for trustees and employers considering a transfer to a superfund.
Parish said that customers of a superfund on the list can have the confidence that the scheme has been through a rigorous assessment process to show they are fit for purpose.
"It is vital however, that trustees and employers still carry out their own thorough due diligence to ensure they are confident a superfund is the right option for their particular scheme and members. We expect employers considering a superfund to come to us for clearance,” she said.
Superfunds can ask TPR to assess them and if they meet TPR’s expectations, they will be added to TPR’s list.
Currently there are few DB consolidators; the other well known consolidator aside from Clara is the Pensions SuperFund, which operates a different model. While Clara's aim is to improve schemes' funding position and bring them to buyout, the SuperFund aims to manage the assets and liabilities similar to an insurer, backed by a financial covenant which is, however, thought to be weaker than an insurer's.
Currently there are few DB consolidators; the other well known consolidator aside from Clara is the Pensions SuperFund, which operates a different model. While Clara's aim is to improve schemes' funding position and bring them to buyout, the SuperFund aims to manage the assets and liabilities similar to an insurer, backed by a financial covenant which is, however, thought to be weaker than an insurer's.
