Endgame developments continue at pace as Clara announce their fourth transaction and funding levels hold firm

Latest results by LCP’s Pensions Explorer at 30 June 2025 show that the combined IAS19 funding level for the UK pension schemes of FTSE100 companies remains strong at over £50bn (118% funding level).

Behind this strong aggregate funding figure, the funding levels for companies are different with individual scheme funding levels varying between around 90% and over 150%. This demonstrates the need for all schemes to consider the endgame strategy that is right for their own specific circumstances and objectives rather than follow any one size fits all solution or wider market trends.  

This comes as Clara announced their fourth superfund transaction, this time with the Church Mission Society Pension Scheme. It is their smallest transaction to date, at £55m, and opens up a potential new endgame option for smaller sized pension schemes who would otherwise have more limited options in this space.  

Aaron Chaderton, Consultant and part of the Endgame Innovation team at LCP, added: “With Clara opening up to the smaller end of the market, it is great to see schemes below £100m having a broader range of endgame options. The competitiveness of the insurance market at that level and recent surplus announcement means trustees across the board have viable options to consider and can better tailor their decisions to their own specific circumstances.”

Harry Fitchet, Associate Consultant and part of the Endgame Innovation team at LCP, added: “Trustees and sponsors need to be alive to the evolving endgame opportunities and risks that could impact their schemes. The latest Clara announcement is another clear demonstration of innovation in this rapidly developing area.”