BT Pension Scheme finalises two longevity swaps of £10bn

The BT Pension Scheme (BTPS), a backstage assemblage pension strategy successful the UK, has completed 2 longevity reinsurance transactions totalling £10bn.

The determination is aimed astatine shielding BTPS from the fiscal interaction of increases successful the beingness expectancy of its members, which presently fig much than 260,000 with £36bn successful assets nether management.

The longevity security and reinsurance agreements unafraid £5bn successful sum for BTPS pensioner liabilities done Swiss Re, portion besides expanding the existent £5bn extortion with Reinsurance Group of America (RGA).

This follows a akin transaction completed successful 2023 and utilises the scheme’s existing infrastructure including its 'captive' insurer.

The transactions volition not impact BT's currency contributions to the scheme.

The operations were spearheaded by Brightwell, BTPS' superior services provider, with enactment from WTW and A&O Shearman.

Swiss Re received advisory services from Willkie Farr & Gallagher during the process.

BTPS seat of trustees Jill Mackenzie said: “These transactions assistance to beforehand the improvement of the scheme’s semipermanent concern strategy, providing accrued certainty for the scheme, our sponsor and members.”

Brightwell main concern serviceman Wyn Francis stated: “These transactions volition beryllium onboarded to Brightwell’s automated, businesslike and low-cost operating platform, reinforcing our acquisition and capableness successful managing each strategy risks to execute market-leading outcomes for a strategy successful run-on.”

RGA UK managing manager Emma Ferris commented: “We are delighted to person erstwhile again partnered with BTPS connected this transaction, further supporting the scheme’s aims of stableness and fiscal information of status benefits for its members.”

Swiss Re L&H Structured Solutions caput Kerry McMullan added: “We are precise grateful for the accidental to bring our fiscal spot and longevity hazard structuring acquisition to BTPS to marque the strategy much resilient to uncertain aboriginal beingness expectancies and helping it supply unafraid status benefits to its membership.”

"BT Pension Scheme finalises 2 longevity swaps of £10bn " was primitively created and published by Life Insurance International, a GlobalData owned brand.

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