Clara is a member first solution for defined benefit pension schemes that is focused on securing the full pension promise for each individual member.
Clara is a bridge for members and sponsors to the insured market. Clara does not aim to be an alternative to pension insurance as the long-term solution for defined benefit pension benefits. Instead, Clara will lower the risk of the journey from the trust based to the insurance based environment.
In Clara’s journey, consolidation and its benefits are the vehicle not the destination. Our only destination is delivering the most secure pension promise to members.
Although Clara has a commercial purpose, the interests of members, capital providers and Clara management are fully aligned around a single objective - delivering the most secure pension promise as early as possible.
How Clara’s Solution Works
Clara will establish a new sectionalised occupational pension scheme governed by a board of fully independent trustees. We expect to be regulated by The Pensions Regulator and to participate in the Pension Protection Fund’s regime. Incoming schemes that become part of the Clara solution will each become a section within the Clara trust.
Clara’s capital provides a permanent and funded covenant. For all but the strongest of schemes and sponsors this will immediately enhance members’ security.
Clara’s solution gives sponsors and schemes, for whom buy-out is currently out of reach, the opportunity to accelerate the fulfilment of their pension promises.
Clara’s funding position allows a de-risking of the investment strategy, therefore members carry less risk on the journey to buy-out.
Six Core Principles
Clara’s solution is built on six core principles:
1. Member First
Members are at the core of everything we do. Members’ interests come first, before other stakeholders. This is reflected both in our focus on member security and in our vision for member engagement.
2. Permanent Capital
Clara’s risk capital is permanent, first in and last out. No funds can flow back to capital providers until members have their full pension benefits secured in the insured market.
3. Strong, Independent Governance
Clara believes in the value of governance. The Clara pension scheme will be governed by a board of fully independent trustees.
4. Bridge to Buy-Out
Clara is not a run-off vehicle. It is not in Clara’s interests to hold members back from the “gold standard” of an insured long-term pension promise. Rather, it is our objective to ensure that members’ full benefits are secured in the insured market as early as possible.
5. Focus on Member Service and Data
Member engagement is key, and Clara’s vision is to ensure members are educated and receive clear, concise communications when they need it.
6. Sponsors Fulfil their Obligation to Members
Clara provides sponsors with the opportunity to accelerate the fulfilment of their pension promises.
We are proud to have developed a solution that is better for defined benefit scheme members and better for UK business. To date, and for the near future, our focus will remain on working with policy makers, regulators, potential clients, service providers and the wider pension industry to ensure we are providing the best solution we can ahead of a formal launch later this year.
Founder and CEO
Co Founder and COO
Chief Actuarial Officer
120 New Cavendish Street, London, W1W 6XX
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