The closed defined benefit pension scheme for Nationwide Building Society has completed a £172m bulk annuity transaction with Canada Life.

Nationwide confirmed that the transaction relates to pensioners in its Cheshire and Derbyshire section and insures the Nationwide Pension Fund against changes in the cost of providing benefits to these members.

Canada Life was selected following a process led by Aon and the fund received transaction legal advice from Sackers.

“This transaction has been brilliant to work on as Nationwide’s pension fund takes further steps to protect the benefits of its members,” commented Canada Life director of retirement income, Nick Flynn.

Trustee Executive for BESTrustees and Chair of the Trustee Board at Nationwide Pension Fund, Catherine Redmond, said: “This transaction is great news for Nationwide Pension Fund and its members, reducing risk and helping to further secure our members’ pensions. We as a Trustee Board are delighted to have taken this substantial step on our long-term de-risking journey.

“The Trustee is grateful to Aon and Sackers for their support and looks forward to working closely with Canada Life.”

Associate partner in the Aon Risk Settlement Group, Tom Scott, added: “A buy-in was the natural next step in the fund’s de-risking journey, further enhancing the security of all Cheshire and Derbyshire section members.

“The transaction is a great example of what can be achieved through preparation, negotiation balanced with flexibility over the transaction process and timing, and collaboration between parties.”

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