BT agrees insurance deal against pension longevity costs
BT has agreed an insurance and reinsurance deal to protect its pension scheme against the costs associated with increases in life expectancy, it said today.
The former state telecoms group has the largest private sector defined pension plan in Britain.
BT said the arrangements it had taken out would cover over 25 per cent of the scheme’s total exposure to improvements in longevity, covering some £16bn of the scheme’s liabilities.
Advertisement
Hide AdAdvertisement
Hide AdThe trustee has set up a wholly owned insurance company, which has in turn reinsured the longevity risk with The Prudential Insurance Company of America.
BT said the agreement would not require additional contributions to be made by it.