CMS advises Trustees of Musicians’ Union Pension Fund on transaction with Aviva

CMS advised the Trustees of the Musicians’ Union Permanent Officials and Staff Pension Fund on the recent £13m bulk purchase annuity full buy-out transaction by Aviva, the UK insurance, wealth & retirement business.  Aviva will insure the defined benefit pension liabilities for all members, removing the investment and longevity risk of these members from the scheme.

The scheme Trustees were advised on legal issues throughout the process by CMS along with Walkers Solicitors.

Keith Ames, Chair of Trustees for the Musicians’ Union Permanent Officials and Staff Pension Fund, said: “We are delighted to have been able to secure our members’ benefits with Aviva, a critical step in the Fund’s journey.  Despite our relatively small size as a pension scheme, Aviva worked well with our advisory team to achieve the transaction.  Barnett Waddingham expertly led the transaction for the Trustees, supporting their role as actuary and administrator.  We have also been supported by Jagger & Associates, Walkers Solicitors and CMS in helping us to achieve this outcome. We were very impressed with the expert knowledge of our advisory team and how well they all worked together to give the support to the Trustees so that we could make the ‘big decisions’ and navigate the challenges we faced.”

James Parker, Partner at CMS, said: “We are delighted for our client.  The Musicians’ Union Permanent Officials and Staff Pension Fund is a great example that, even in a very busy market, small schemes can still successfully transact. It also shows the capability of the CMS team to support clients at both the large and small end of the de-risking spectrum.” 

The CMS Pensions team was led by James Parker, Maria Rodia and Amanda Chamming’s supported by Miranda Bond. 

This latest transaction is another great example of CMS’s market leading reputation in acting for pension schemes in de-risking transactions. In 2021, CMS advised on 23 de-risking transactions with a combined value of more than £15bn.  Most recently, the team advised the Trustee of the WH Smith Pension Trust on a £1bn residual risks buy-in with Standard Life and the Trustee of De La Rue Pension Scheme in relation to its £320m buy-in with Scottish Widows.