Pension Insurance Corporation (PIC) has completed a third pension risk transfer transaction for a pension scheme sponsored by Scottish & Southern Energy (SSE), converting a pensioner longevity swap held by the Scottish Hydro Electric Pension Scheme (SHEPS) into a £750m buy-in.
In 2016, PIC insured £250m of SHEPS’s pensioner liabilities and £100m of pensioner liabilities in the Scotia Gas Networks Pension Scheme, through two separate buy-ins.
Graham Laughland, chairman of trustees of SHEPS, said: “I am delighted that the trustees have been able to take another step in reducing risk and improving the security of members’ benefits.
"This buy-in extends the insurance we have in place and provides the scheme with an income stream that matches in all material respects the pensions currently being paid. A very smooth process from my perspective.”