Clara is ‘Member-First’. That means safer pensions, a better member experience and trustees looking out for member interests.

You’ll hear a lot about Clara being ‘Member first’. What does that actually mean?

Clara is a defined benefit pension scheme consolidator. Defined benefit pension schemes are sometimes called ‘final salary’ pension schemes as promised pensions in these schemes are usually based on how long someone worked for a company and how much they earned.

Consolidation is about bringing pension schemes together. Clara takes on the members and assets of existing pension schemes. The members become members of the Clara pension scheme which is then responsible for paying members their promised pensions. Rather than a company, such as a manufacturer or a retailer, standing behind the pension scheme, there is a funded pot of invested assets.

The Clara pension scheme (known as the Clara Pension Trust) is overseen by our trustees. They are all professional independent trustees with decades of pensions experience. Their responsibility is to members first, ensuring promised pensions are paid and the scheme is well run.

Clara’s model is set up so that after an average period of seven to ten years, we’ll then look to pass groups of our members to an insurance company, in what is known as a ‘buy out’ – this will give even greater security to members’ promised pensions. Only then can the funded pot of invested assets that stands behind that part of the Clara pension scheme, and any return on those assets, be returned to our investors. If the journey takes longer than hoped, the invested assets have to stay there for longer. If there is turbulence on the journey, these assets are the buffer before member benefits are at risk – members always come first.

Our ambition is that on that journey to buy out we’ll offer an improved member experience. This includes more and better information about your pension savings and the ability to check and update your details online. We’ll also look to collect better information about your circumstances to help simplify the payment of anything due to your family when you pass away.

It is all these parts of how we work which make Clara ‘Member first.’