Aberdeen City Council Transport Fund, Aberdeen, Scotland, insured £230 million ($315 million) in liabilities through a buy-in with Rothesay Life, a spokeswoman confirmed.
In its first ever transaction, the fund insured £230 million out of £300 million of its liabilities, covering 1,360 retired employees of transport group FirstGroup.
Mercer advised the Aberdeen City Council on the deal. Law firm Brodies provided legal advice to the fund, and Linklaters provided legal advice to the insurer.
"This buy-in is the culmination of a project to sustainably derisk our Scottish local government pension funds," Ian Hodgson, group pensions manager of FirstGroup, said in the release Wednesday.
"Transactions with the insurance market are not commonplace in the LGPS, and we are grateful to both Rothesay and the Fund for their work in making this an attractive derisking option for employers and funds alike," he said.