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Pension SuperFund signs up second client in £300m deal

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Defined benefit (DB) consolidation vehicle The Pension SuperFund has signed an exclusivity agreement with a £300m (€328m) pension scheme, its second deal since opening for business last year.

If the transaction completes, the scheme – which was not named in the announcement from the SuperFund – will transfer from its sponsor to the consolidator, subject to approval from the Pensions Regulator (TPR). 

The SuperFund’s first deal, with an as yet unnamed pension fund, was submitted to TPR for clearance in May, IPE understands.

Luke Webster, the CEO of The Pension SuperFund, said: “The Pension SuperFund is pleased to announce that we have signed the exclusivity agreement on our second deal.

“Having submitted our first transaction to the Pension Regulator for clearance earlier this year, it is excellent to see the faith, which trustees increasingly have in our particular model of defined benefit pension consolidation.

“The £300m deal will be a very fitting first addition to the SuperFund, and represents a very significant increase in funding for the members concerned.”

While there is no formal framework for regulation of commercial consolidators such as the SuperFund and Clara-Pensions, both companies have been working closely with TPR and government departments to ensure they are aligned with likely future rules, expected in the forthcoming Pensions Bill 2019.

Clara-Pensions has yet to announce its first transaction, but has previously stated that it is in discussions with more than 60 schemes that collectively represent £15bn in liabilities.

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