• Members of the Church Mission Society Pension Scheme become the fourth section to join Clara, the UK’s only defined benefit ‘superfund’, beginning their journey to an insured buyout
• First transaction to use Clara’s connected covenant feature, enhancing member security through both Clara’s capital and a continuing guarantee from the original sponsor
• First superfund transaction involving a not-for-profit sponsor marks an important step for charities seeking to secure members’ pensions while refocusing on their charitable purpose

Clara-Pensions (“Clara”), the member-first consolidator for defined benefit pension schemes, has agreed its latest superfund transaction with the Church Mission Society (“CMS”) and the Trustee of the CMS Pension Scheme (the “Scheme”). The agreement, Clara’s fourth, marks another milestone for UK superfunds, as both the first transaction to make use of a ‘connected covenant’ structure and the first involving a not-for-profit employer, demonstrating the broad appeal of consolidation. 

Under the agreement, 730 members of the Scheme and £55 million in assets will transfer to Clara’s management. Scheme members will continue to receive their full pension entitlements, with the transaction backed by significant financial contributions from both CMS and Clara.

The transaction also marks the first use of Clara’s connected covenant structure, expanding the potential number of defined benefit schemes able to access consolidation and increase member security. This feature allows a continuing contingent guarantee from the original sponsor – in this case, CMS – alongside Clara’s capital commitment. The connected covenant provides an additional layer of long-term security for members, strengthening the financial safeguards in place as the Scheme progresses towards an insured buy-out. Clara believes there is strong interest in this model, with the potential for up to £50bn of schemes in the UK to increase their security in this way.

While CMS is the first charity to complete a transaction with Clara, there are approximately £10 billion of unsecured defined benefit liabilities in the wider charitable sector, reflecting the potential for significant increases in member security through consolidation. This reflects the growing recognition of consolidation as a viable route for not-for-profits seeking to secure pension obligations while prioritising their charitable work.

Clara was advised by legal firm Cameron McKenna Nabarro Olswang, continues to be backed by global investment firm Sixth Street and was supported in its due-diligence by Heywood Pensions Technologies.  The Clara Trustee is supported by pensions consultancy Hymans Robertson; fiduciary managers Van Lanschot Kempen; and legal firm Eversheds.

Hymans Robertson led the advice to CMS who also received legal advice from Gunnercooke. The Trustee of the Scheme was advised by Barnett Waddingham and Burges Salmon.

“This marks Clara’s fourth transaction and a landmark for the not-for-profit sector. We’re proud to support the Church Mission Society in securing the long-term future of its members’ pensions, while enabling the organisation to refocus on its core charitable purpose. This transfer is not only the first involving a charity, but also the first to use a connected covenant structure – an important new layer of protection for members. With a strong and growing pipeline that includes several other charitable schemes, we are proving that Clara is accessible to all types of sponsors, regardless of sector.”

Matt Wilmington
Chief Transactions Officer at Clara-Pensions

“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. I have been impressed with how all the parties worked together, and would like to pass on my thanks to all the advisors for their collegiate behaviours.”

Richard Hubbard of Capital Cranfield
Chair of Trustee for the CMS Pension Scheme

“Church Mission Society is deeply committed to the wellbeing of our employees past, present and future and so I, and the rest of the senior leadership team, are pleased to be able to take this important step towards ensuring the security of our mission partner and staff pensions.”

Alastair Bateman
Chief Executive Officer at Church Mission Society

About Clara-Pensions

Clara-Pensions (Clara) is the UK’s first and only operational defined benefit (DB) superfund, offering a safe and secure solution for DB pension schemes on their journey to insured buyout. As a member-first consolidator, Clara helps pension schemes transfer to a stronger financial footing, with the goal of delivering full benefits to members faster and with greater certainty.

Clara has now completed four landmark superfund transactions, including the UK’s first ever in November 2023 with the Sears Retail Pension Scheme, followed by Debenhams in March 2024 and Wates Group in December 2024. Together, these schemes represent more than 21,000 members and over £1.4bn in assets under management.

With a robust and growing pipeline of schemes, Clara continues to demonstrate the broad appeal of its model for both distressed and active sponsors seeking a reliable path to buyout.

Clara is backed by global investment firm Sixth Street and advised by a range of expert partners across legal, actuarial, and fiduciary disciplines.