Mark Williams
As the UK’s first authorised pension superfund, Clara has carved out a unique role in the pension risk transfer (PRT) market. With buy-ins and buyouts dominating endgame headlines, superfunds are now becoming an increasingly important option for schemes seeking to secure member outcomes when insurance isn’t accessible.
As part of our PRT Perspectives series, Heywood’s Mark Williams recently sat down with Matt Wilmington, Chief Transactions Officer at Clara Pensions, to hear how Clara is evolving, the hurdles schemes face, and where technology could accelerate the journey.
We’re proud of our relationship with Clara, including working on its most recent transactions, providing support with data and benefit audits.
Mark Williams: Clara, as the UK’s first superfund, has carved out a unique space in the UK’s de-risking market. How is Clara evolving its approach and proposition to support more schemes as the market matures?
Matt Wilmington: Clara’s early transactions were with distressed sponsors, such as Sears Retail and Debenhams. That was a necessary starting point, but the model has since widened significantly. Our more recent transactions, with solvent sponsors, shows that superfunds are a viable, positive option for strong schemes too.
Looking ahead, a major focus is smaller schemes that can’t afford or access insurance. There are thousands out there with limited options. As Clara grows, scale and efficiency should allow us to support this segment, ensuring no scheme is left without a de-risking pathway.
Mark: In recent years, we've seen a surge in schemes reaching full funding. What kinds of schemes are best suited to the superfund model today, and what key factors are influencing those entering conversations with Clara?
Matt: To transfer to a superfund, The Pensions Regulator requires clearance for transfers, testing whether members will be better off in a superfund and whether insurance is accessible. That really defines the universe of schemes we will be able to support.
That market is huge, with perhaps £300–£400bn of liabilities in total – some haven’t reached the funding threshold to even be able to transfer to a superfund at this stage, but there’s a lot that have.
We are typically seeing three types of conversations. The first of those being with distressed sponsors where Clara’s capital provides greater security for members. Then there are the sponsors seeking lower-cost de-risking than insurance. And finally, corporate activity-driven cases, such as M&A or private equity, where schemes need a secure solution ahead of transactions.
Mark: From the transactions Clara have completed to date, what have been the key learnings you will take into future transactions?
Matt: What’s been interesting is that from the deals we’ve completed to date, no two deals have been the same, which has taught us a lot. We’ve become far more efficient in regulatory processes, and we’ve refined the admin transition when moving schemes into the Clara environment. Early transactions carried higher costs, but today those costs are converging quickly with bulk annuities, making Clara a more accessible option.
Mark: As a consolidator focused on long-term member outcomes, how does Clara work with advisers and trustees to maintain governance and transparency through the transaction journey?
Matt: I think it’s important to remember that Clara itself is a pension scheme with its own trustee board, chaired by Alan Pickering. They are very much focused on positive member outcomes and it’s the governance that drives that.
That governance structure reassures transferring schemes, because we look familiar, we also have the same type of advisers: actuaries, investment consultants, fiduciary managers.
When trustees meet our board, it builds confidence that member outcomes remain central. On top of that, TPR oversight provides an additional layer of assurance.
Mark: PRT timelines are compressing, and capacity is tight across the industry. From your perspective, how well are schemes preparing for superfund transactions, and what are the common hurdles you're seeing?
Matt: Compared to bulk annuities, schemes entering the superfund market are less prepared on data and benefit specs, which is completely understandable. Many thought they were five or ten years away from buy-out, but now, suddenly, superfunds have given them an option sooner. The main hurdle is the pace of data cleansing and benefit agreement. Governance is strong, but it’s fair to say data preparation needs to catch up.
Mark: How is technology already supporting Clara’s operations, particularly when it comes to data preparation and benefit validation ahead of transactions – how are you mitigating data and benefit risks?
Matt: Getting benefits right on day one is critical. Members shouldn’t experience errors or be passed back to old administrators. That’s why we work with partners such as Heywood to validate data, run automated checks, and highlight issues before they cause member disruption.
Looking ahead, AI and automation could transform benefit specification work. Tools that convert scheme rules into benefit specs, or translate specs across formats, can save weeks of manual effort. The challenge is to balance efficiency with maintaining the human expertise needed to oversee outcomes.
Mark: Looking ahead, where do you see the biggest opportunities for technology to support Clara in the PRT market?
Matt: One of the biggest opportunities lies in taking time out of the process. Benefit specifications are a good example. Tools are emerging that can translate decades-old scheme rules into usable specifications or convert one format into another, saving weeks of manual work. Of course, you’ll always need experienced professionals to review the output, but starting with a strong baseline makes a real difference.
Beyond that, the real bottlenecks across the PRT market are pricing and contracting. These are areas that rely on highly skilled actuaries and lawyers, so I do think we’ve got to very careful not to take the knowledge out of the system, but whilst you can’t remove that expertise, you can strip out some of the more process-heavy tasks to free up their capacity and I think technology can be can be fantastic for that. It’s great to see firms such as Heywood making good advances in this area.
Many thanks to Matt Wilimington for joining us and sharing insights on the superfund’s role in today’s PRT market.
