Clara-Pensions becomes first pensions superfund to pass UK regulator's tests

LONDON, Nov 30 (Reuters): Clara-Pensions has become the first pensions superfund to pass the British pensions watchdog's assessment process, enabling it to manage company defined benefit, or final salary, pension schemes, The Pensions Regulator said on Tuesday.
Pension superfunds are a lower-cost alternative to insuring such schemes through a so-called bulk annuity. Bulk annuities are provided by life insurers such as Aviva (AV.L), Legal & General (LGEN.L) and Phoenix (PHNX.L).
Superfunds such as Clara-Pensions have been planned for several years, as an alternative way for companies to offload the risk of running such schemes, many of which are in deficit.
But the structure has come in for criticism from bulk annuity providers on the basis that it may provide less protection for policyholders.
Adam Saron, CEO of Clara-Pensions, said that "Clara's member-first model is ready for transactions".