Consolidation is about bringing pension schemes together – this gives consolidators benefits of scale so that they can invest, look after members and be run better than many individual schemes, despite their best efforts, would be able to do alone - given the need to balance the competing time interests of managing the scheme and the day to day running of the employer. There are different types of consolidation, some will just bring together one area of support to pension schemes, some will merge all of the functions supporting the scheme.
Defined benefit consolidators like Clara, sometimes known as superfunds, go a step further by replacing the existing sponsor with a funded covenant that stands behind promised pensions.
Clara brings defined benefit pension schemes together, replacing the existing sponsor covenant with a pool of capital underscored by robust governance. Our model acts as a bridge to buyout for pension scheme members, from the company that backed them to a long-term insured future. We have a member-first ethos at Clara and the interests of our members, our capital providers and Clara itself are aligned around a single objective — to deliver the most secure pension promise as efficiently as possible. Put simply, the Clara model is member first. You can find out more here.
We’ve put together this website to provide introductory information on consolidation, Clara and how we work. You can find suggestions about where you can find further information on the relevant page for each group who might be interested in Clara. Please do though feel free to ask us questions.
Clara is a defined benefit pension scheme consolidator. That means it’s not individual members who choose to transfer their pension pot to Clara — it’s trustees who run the whole pension scheme, working with their sponsor and their advisors who’ll decide whether Clara is the right choice to give their members greater pension security. If as a member you think Clara might be the right option for your scheme that is something you would need to speak to your pension scheme about.
Your pension won’t change but who you speak to about it may. Before members of a pension scheme pass to Clara, the trustees who run the existing pension scheme will be in touch to explain why Clara is the best future for members, explain what will happen next and be ready to answer any questions. Once a transfer takes place we’ll explain how you can get in contact with us to answer any questions you might have. We’ll very clearly explain if we’re responsible for your pension so please hold on to anything we send you.
We’ll only be in contact once we’ve taken responsibility for your pension. Clara doesn’t charge you anything to manage your promised pension and won’t write to you asking for bank details unless we’re putting your pension into payment or checking on existing pension payments. If you receive any correspondence mentioning Clara which asks you for personal information and you have any concerns please contact us.