Aon Hewitt has entered the public sector pensions administration market after completing its acquisition of Babcock International Group’s pensions administration office (PAO) in Caithness, Scotland.

Aon Hewitt has taken on all 33 employees from the PAO and all of its employer clients, which are mainly comprised of public sector final salary pensions schemes with around 80,000 members.

The office also provides administration services for private sector pension schemes, as well as for defined contribution (DC) schemes and career average revalued earnings (Care) schemes.

Stuart Heatley, managing director, benefits administration, UK and Europe, the Middle East and Africa (EMEA) at Aon Hewitt, said: “We have had a positive reaction to the news of our acquisition of the PAO and, consequently, of our entry into the public sector pensions administration market.”