This website will offer limited functionality in this browser. We only support the recent versions of major browsers like Chrome, Firefox, Safari, and Edge.
We have advised the Trustee of the Church Mission Society’s (CMS) Pension Scheme on its agreement to transfer members to Clara-Pensions (“Clara”), the UK’s only defined benefit ‘superfund’. This is only the fourth superfund transaction in the UK to date and the first to adopt an innovative ‘connected covenant’ structure to further enhance security through a continuing guarantee from CMS.
In what is also the only ever superfund transaction to be completed for a small scheme – and the first for an employer in the not-for-profit sector – the deal sees £55 million of assets and 730 members transfer to Clara’s management, offering a secure journey towards an insured buy-out with all members continuing to receive their full pension entitlements, with Clara and CMS injecting new capital to support members’ benefits.
Burges Salmon’s Pensions team, led by partner Clive Pugh, senior associate Jack Gillions and solicitor Serena Kutty, acted for CMS’s trustees on all aspects of the transaction.
“The transaction with Clara is an important step towards CMS’ dual objectives of securing its pension scheme members’ futures whilst focusing its resources on its key charitable activities in the UK and overseas and we’re proud to have supported our client through this groundbreaking and innovative transfer.”
Clive Pugh, partner
“This is really good news for our members. As trustees we are focused on our duty to ensure pensions are paid, and this transaction means our members’ pensions are more secure. The new arrangement benefits from significant financial commitments from both CMS and Clara, in addition to the ‘connected covenant’ which means our members retain the long-term protection of our existing security package. With the Clara trustee taking over our responsibilities in a seamless manner, we are confident our members are in good hands. We have been impressed with Burges Salmon’s deep expertise and understanding of the charity sector, with the team working side by side with us and other advisors and we are grateful for their collegiate approach.”
Richard Hubbard, chair of trustee – Capital Cranfield, CMS Pension Scheme
Burges Salmon’s Pensions team is highly regarded in the legal industry, advising around 10 percent of the UK’s trust-based occupational pension schemes and acting on some of the most complex and high-profile cases. The firm’s pensions clients – some of whom it has represented for more than 30 years – span the private and public sectors, large commercial master trusts, not-for-profit organisations as well as religious and educational bodies, and the team continues to build upon its trusted status in the international arena, providing specialist UK legal advice to its international clients and coordinating advice across multiple jurisdictions.
Recognising that innovation in the pensions industry is vital to understanding its ever-changing landscape, the firm has brought to market a number of interactive tools to shape best practice and support clients meet their statutory requirements, including an ESG Pensions toolkit and a UK Pensions for International Companies Triage tool.
