Broadstone works with advisers and the Trustees to secure the UK’s second ever superfund transaction with Clara

  • Broadstone supports the Debenhams Retirement Scheme on the £600 million deal – the second ever UK superfund transaction – and the first transaction from a scheme that has been through a Pension Protection Fund (PPF) assessment.
  • Enables all 10,400 members of the Scheme to restore Scheme benefits.

Broadstone took over the day-to-day administration of the Scheme in June 2022 and developed strong relationships with the Trustees and members, as well as a deep understanding of the Scheme.

The transaction restores Scheme benefits, with back-payments paid to reflect any required restrictions in member benefits during the PPF assessment period. Additional £34m of ring-fenced capital will be injected by Clara Pensions to further improve the security of benefits.

Broadstone is proud to have played a significant role in the transaction alongside Vidett (Independent Trustee), the Scheme’s advisers (Hymans Robertson and Osborne Clarke) and Clara Pensions, with the deal marking the first of its kind with an insolvent sponsoring employer. Following the ground-breaking transaction, Broadstone will continue to administer the Debenhams Section of the Clara Trust.

Liz Loosmore, Head of Broadstone’s PPF team, said: “We’re delighted to be on the PPF’s Specialist Administration and Actuarial Services panel and it’s been great to be part of the Scheme’s journey, navigating through the PPF assessment and helping get the Scheme transaction ready. We are very much looking forward to continuing to deliver our exceptional, award-winning administration services to members of the Scheme as it enters into this new, exciting phase with Clara Pensions.”

Alan Pickering, Chairman of the Clara Trustee Board, said: “We are delighted to welcome the Debenhams Scheme Members to our Clara Community. We will play our part in ensuring that the next stage in their journey fulfils all their expectations.”

Sara Protheroe, Chief Customer Officer, at the PPF, said: “This is a positive outcome for members of the Debenhams Scheme. When a scheme enters PPF assessment, our focus is always to protect members and achieve the best available outcome for the scheme. We’re pleased that our collaborative approach working with Clara, coupled with the value from our specialist PPF panellists, has helped secure a better than initially expected outcome for members. This deal also demonstrates the success of our PPF+ Advisory panel, which we introduced in 2022 to support overfunded schemes to explore options beyond the PPF, as well as the PPF’s ability to continue to evolve to meet the needs of the changing landscape of defined benefit pensions.”

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