Second DB Consolidation Scheme to come to the market in the next few months

Trustees Agenda posted on 2 May, 2018

At a hearing on the Government's DB White Paper, The Work and Pensions Select Committee have been told by Jon Hatchett, a Partner at Hymans Robertson, that he had been made aware of the creation of this new scheme, reportedly christened Clara.

As part of its DB White Paper, the Government declared its intention to encourage greater consolidation within the DB pension market. The first consolidation fund, the Pension Superfund was created as a result of this. FTAdvisor has been told that Clara will adopt a different model to the Pension Superfund, keeping any schemes it consolidates segregated with the ultimate goal of 'moving to settle the pension funds with insurance companies.' This contrast with the Pension Superfund's method of working as one pension fund.