Pension scheme consolidator Clara Pensions has signed its second superfund deal after making a £600m ($786m) agreement with the Debenhams Pension Scheme.
The Debenhams Pension Scheme has been under assessment by the UK’s Pension Protection Fund (PPF) since its parent company went bankrupt in 2019.
Under the superfund deal, 10,000 scheme members will be transferred to Clara Pensions.
Under the terms of the transaction, £4m in back-payments will be paid to members who received reduced pensions during the PPF assessment period, when member benefits were aligned to PPF Compensation levels.
The scheme trustees were advised by Vidett, the specialist administration and actuarial panellist was Broadstone. The PPF was advised by Hymans Robertson and Osborne Clarke gave legal advice.
The superfund concept was introduced in 2018, during a period of much lower interest rates, and was intended to provide a bridge to a full insurance buyout for pension schemes.
Clara signed its first superfund deal with Sears pension scheme in November last year.
According to Reuters, Clara is currently working on a pipeline of 10 deals.