Aberdeen Council has completed a £230m buy-in transaction, insuring the pension payments of 1,360 retired FirstGroup employees.
According to pensions insurance specialist Rothersay, which completed the transaction, the deal is thought to be only the second local government pension scheme to secure its pension obligations through an insurance policy.
Commenting on the buy-in Laura Colliss, pensions manager for Aberdeen City Council, said: “We are very proud to be able to offer our members the protection to their pensions and the peace of mind that this insurance policy provides.”
She added: “This transaction underscores our commitment to meeting the pension obligations and places the fund and the taxpayer in a strong position for the future.”
Ian Hodgson, group pensions manager of FirstGroup, said: “After the successful merger of our obligations from the Strathclyde Pension Fund, this buy-in has removed £230m of pensions risk from the company, securing the pensions for some 1,360 members in the process.”
Leading the transaction for Aberdeen City Council was Mercer.