Pensions Bulletin 2026/41
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This edition: TPR reinforces endgame and governance message and six Marelli schemes to undertake landmark transfer to Clara.
TPR reinforces endgame and governance message
In a speech on 8 October 2026, the Pensions Regulator’s Chief Executive, Nausicaa Delfas, reinforced TPR’s call for trustees to decide their schemes’ future, and emphasised its vision of fewer, larger schemes, delivering security and value in a pensions system geared towards providing a sustainable income in retirement. She reminded trustees of the need to have the right skills and experience on trustee boards, seeking training from advisers as necessary.
Ms Delfas urged DB trustees to set a long-term objective, assess the available endgame options and challenge whether their governance remains fit for purpose. Trustees should document their decisions, including consideration of covenant, security, funding, governance, costs and investment strategy. TPR’s view is that decisions about surplus should follow the scheme’s long-term objective, rather than drive it.
For DC schemes, trustees should assess whether they can meet forthcoming requirements and deliver good member outcomes independently, or should consolidate. Those continuing independently should consider how their governance arrangements may need to evolve as “the bar is rising quickly”, especially in light of the upcoming value for money framework and guided retirement requirements.
The speech also reported that there is a pipeline of likely multi-employer CDC applications, with the first schemes potentially accepting contributions from early 2027.
Comment
As with TPR Chair Emma Douglas’ speech, which we reported on last week (see Pensions Bulletin 2026/40), the emphasis of Ms Delfas’ speech is on member outcomes rather than inputs. The challenge from TPR is for trustees to consider whether they are able to deliver good member outcomes if they do not consolidate. The regulatory pressure continues.
Six Marelli schemes to undertake landmark transfer to Clara
Six Marelli UK defined benefit pension schemes have agreed to transfer together to Clara, in a transaction covering more than 3,300 members and approximately £250m in assets. This is Clara’s eighth transaction and the first in which six schemes will transfer together into a single section of the Clara Pension Trust.
This transfer of six schemes together into a single section shows Clara’s flexibility to adapt its offering to a wider range of situations. The smaller of the Marelli schemes each have assets of less than £10m and it is unlikely they would be able to access the superfund model on a standalone basis. Combining them enables the schemes to benefit collectively from economies of scale. Members will retain their full pension entitlements, with Clara providing additional ring-fenced capital to support benefit security.
Comment
This transaction, on which LCP acted as the Trustee’s lead adviser, demonstrates how combining several legacy schemes within an employer group can make a superfund transfer accessible to smaller schemes alongside larger ones. Other groups with multiple DB schemes may wish to consider whether a coordinated approach could broaden their endgame options, while recognising that the suitability of the outcome needs to be assessed separately for each scheme.
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