Advising Aberdeen City Council in connection with the first ever buy-in transaction within the Local Government Pension Scheme in Scotland

We were instructed by Aberdeen City Council in connection with a £230m pensioner buy-in transaction involving the Aberdeen City Council Transport Fund and Rothesay Life.

This followed the merger of the Strathclyde Pension Fund (No.3 Fund), into the Aberdeen City Council Transport Fund, both of which are transport funds within the LGPS.

Key highlights

• The first transaction of its kind within the Local Government Pension Scheme in Scotland and only the second transaction in the UK.
• Agreement of specific terms with Rothesay Life and their advisers, recognising the unique structure of LGPS.
• Highly specialist area of the law.

Outcome

In return for the £230m premium, Rothesay will meet the cost of providing the insured benefits.

As mentioned above, the buy-in policy secured is the first of its kind in Scotland and the Aberdeen City Council Transport Fund is only the second LGPS fund to have its benefits secured through an insurance policy.