Scottish Widows has competed a £805m buy-in with the Electricity North West Group of the Electricity Supply Pension Scheme, sponsored by Electricity North West Limited.

The buy-in was described as a “significant step” on the group’s longer term de-risking journey and is expected to provide additional security and stability to scheme members.

The trustees of the scheme were advised by Aon and Sackers, with support from the Aon Scheme Actuary and the KPMG investment team. Aon has now advised on all the Electricity Supply Pension Scheme bulk annuity transactions completed.

Scottish Widows were advised throughout the process by Herbert Smith Freehills.

Commenting on the buy-in, the schemes’ chairman of trustee, Malcolm Sugden, 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.

“Aon’s effective and expert advice enabled us to achieve attractive terms in a period of heightened market volatility. Our other advisers (Sackers and KPMG investment team) should also be thanked for the advice and work in successfully delivering the buy-in.”

Electricity North West Ltd, CFO, David Brocksom, added: “The transaction represents a significant step in the long-term pensions de-risking 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.”

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