On the go: The Electricity North West Group of the Electricity Supply Pension Scheme has completed a £805m pensioner buy-in with Scottish Widows.
The deal, which covers some 4,000 pensioner members and represents around half of the pension scheme liabilities, represents a significant step for the scheme’s long term derisking journey, the parties stated.
The sponsor, Electricity North West, was advised by KPMG, while the trustees received transaction advice from Aon and Sackers. Scottish Widows was advised by Herbert Smith Freehills.
Malcolm Sugden, the scheme’s trustee chairman, said: “The group's funding level has improved significantly in recent years, and this transaction allows us to lock in some of that positive performance providing security to our members and other stakeholders.”
David Brocksom, chief financial officer at Electricity North West, said: “The transaction represents a significant step in the long-term pensions derisking strategy, reducing material risk to our customers.
“Given that the transaction could extend the deficit repair period funded by our customers, we sought advice from KPMG and consulted widely with customers to ensure that it was in their interests.”
