(Adds quotes, background)
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, Legal &
General and Phoenix.
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.
"It is vital...that trustees and employers still carry out
their own thorough due diligence to ensure they are confident a
superfund is the right option for their particular scheme and
members, and only consider a superfund which is on our list,"
said Nicola Parish, TPR’s executive director of frontline
regulation.
"We expect employers considering a superfund to come to us
for clearance.”
Adam Saron, CEO of Clara-Pensions, said that "Clara’s
member-first model is ready for transactions".
(Reporting by Carolyn Cohn, editing by Huw Jones)