Clara-Pensions reaches agreement for Debenhams Retirement Scheme to enter into pension superfund

• Debenhams Scheme’s 10,400 members will join Clara, the first UK pension superfund
• Debenhams Scheme’s members will receive their originally promised pensions in full, along with back-payments to remedy any reductions in their benefits during the Pension Protection Fund’s (“PPF”) assessment period
• Clara has increased the security of members’ benefit with a £34m capital injection
• This transaction builds on the recent transfer of Sears Retail Pension Scheme’s members to Clara

The Clara-Pension Trust (“Clara”) has today announced that it has entered into an agreement with the Debenhams Retirement Scheme (“Debenhams Scheme”) which will result in the pension benefits of the Scheme’s 10,400 members being transferred into its pension superfund. This means Clara will be looking after the benefits of 20,000 members, as it continues to grow in scale.

Under the terms of the transaction, £4 million 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, following the insolvency of Debenhams. 

Clara will also provide members of the Debenhams Scheme with an injection of £34 million of ring-fenced capital. This significantly improves member security and provides increased certainty on the journey to an insured buyout in five to ten years’ time.

The Trustees of the Debenhams Scheme, chaired by Mark Cliff at Vidett, who were supported by the PPF in considering which options outside of the PFF would provide the best possible outcome for members, have now written to inform members of the intention to transfer their pension benefits to Clara. The formal transfer of members will proceed in April 2024.

Clara is backed by Sixth Street, a diversified global investment firm which manages over $74 billion in assets and has more than 500 team members operating around the world.

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