On the go: Clara Pensions became the first consolidator to join the Pensions Administration Standards Association on Wednesday, boosting its legitimacy before the announcement of its first client.
While consolidation continues to gain momentum, the two superfunds, Clara and the Pension SuperFund, have yet to announce any transfers in. They have both claimed to be discussing potential transactions with the Pensions Regulator.
By joining PASA, an independent body for defining and accrediting good service in pensions administration, Clara plans to learn from best practice.
“Working with PASA will give us a clear view of ‘what best looks like’ as we develop our member services, undertake our first transactions, and show that consolidation can be good for members,” said Kim Toker, Clara’s chief operating officer and co-founder.
Ms Toker said that consolidation was not just about safer pensions, but also better quality service for members.
It is encouraging to see organisations such as Clara proactively engaging with their administration and taking their responsibility to members seriously
Kim Gubler, PASA
She continued: “As we scale, we’ll aim to learn from best practice. We believe that focusing on improving data quality and administration are crucial to a modern, positive member experience.”
Consolidation is driven by a desire to guarantee the security of defined benefit pensions savings. But it also signals the potential for administration complexities, according to PASA chair Kim Gubler, who welcomed Clara’s decision to join PASA and centre members in its decision-making.
Ms Gubler said: “It is encouraging to see organisations such as Clara proactively engaging with their administration and taking their responsibility to members seriously.”
As consolidation develops as a pathway for pension schemes, open dialogue within the industry is crucial to driving up standards, she said.
“Establishing open dialogue and communication with different areas in the industry means we can drive more genuinely valuable and practical solutions to the challenges impacting the administration market,” Ms Gubler added.
The Pension SuperFund's administrator, Equiniti, is already a member of PASA.
*This article has been updated to clarify the Pension SuperFund's position on PASA membership.
