Fund Completes Unique Buy-In
The Fund has recently completed and obtained a buy-in policy, securing liabilities for pensioner members of the NESPF Transport Fund - the first of its kind for the LGPS Scotland.
The buy-in marks the completion of a 2-year project which included the transfer of all members and assets from the Strathclyde No. 3 Transport Fund to the NESPF Transport Fund.
The complex process began after the single employer within both the No. 3 Fund and the NESPF Transport Fund expressed their desire to reduce the risk associated with their LGPS pension liabilities and to streamline their administrative requirements. To achieve this, it was agreed that the Fund’s would merge, followed by a buy-in process to secure pensioner liabilities.
The merge was a substantial project and one of the key administrative tasks for the Fund in 2019. Not only did it involve close working partnerships with other Funds, employers and third parties but internally, it saw teams collaborate to guarantee the smooth transition of financial assets and data whilst ensuring affected members were kept fully informed and engaged throughout.
Following the successful merge, the procurement process for the buy-in commenced in early 2020. The buy-in, is an insurance policy that is a near exact match against some, or all of the pension liabilities held by the Transport Fund with administration of these pension benefits being maintained by the NESPF.
Despite being delayed due to the COVID-19 outbreak and the subsequent volatility of financial markets, procurement resumed with a successful bidder and contract awarded in late 2020.
