Pensioner buy-in for the Aberdeen City Council Transport Fund with Rothesay Life

Introduction

In 2020 the Aberdeen City Council Transport Fund became only the second Local Government Pension Scheme (LGPS) Fund to complete a bulk annuity transaction. Mercer was the lead adviser on both of those exercises and brought together the expertise from their LGPS and Risk Transfer teams to work with the Fund’s legal advisers, investment advisers and the insurers, to ensure the Fund met its goals.

The brief

To reduce reliance on the sponsor covenant by insuring the pensioner liabilities through a bulk annuity.

The outcome

By bringing together experts from our Risk Transfer and LGPS teams, Mercer were able to help the Aberdeen City Council Transport Fund undertake a competitive broking exercise within a public procurement environment.

The negotiation phase that we built into the project gave the Fund confidence not only that we had sourced a good price but also that contractual terms were attractive too.

The transaction itself was overlaid by a robust price-lock, enabling the Fund to have full transparency on the price they were paying.

The process

What the Aberdeen City Council Transport Fund said:

It was great working with Mercer who guided us through the process from start to finish, helping us manage various internal and external stakeholders and keep everyone on-track to ensure a competitive process, ultimately delivering value for money.

To find out more about bulk annuities and the LGPS, please complete the form below.

This case study is intended for general information only and the material is not tailored to your particular circumstances. It does not contain investment, financial, legal, tax or any other advice and should not be relied upon for this purpose.

Case study Pensioner buy-in for the Aberdeen City Council Transport Fund

Introduction

The brief

To reduce reliance on the sponsor covenant by insuring the pensioner liabilities through a bulk annuity.

The outcome

By bringing together experts from our Risk Transfer and LGPS teams, Mercer were able to help the Aberdeen City Council Transport Fund undertake a competitive broking exercise within a public procurement environment.

The negotiation phase that we built into the project gave the Fund confidence not only that we had sourced a good price but also that contractual terms were attractive too.

The transaction itself was overlaid by a robust price-lock, enabling the Fund to have full transparency on the price they were paying.

The process

What the Aberdeen City Council Transport Fund said:

It was great working with Mercer who guided us through the process from start to finish, helping us manage various internal and external stakeholders and keep everyone on-track to ensure a competitive process, ultimately delivering value for money.

To find out more about bulk annuities and the LGPS, please complete the form below.

Speak with a Mercer LGPS expert

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