BT PENSION SCHEME COMPLETES TWO LONGEVITY SWAP TRANSACTIONS TOTALLING £10bn
21/03/2025
BT PENSION SCHEME COMPLETES TWO LONGEVITY SWAP TRANSACTIONS TOTALLING £10bn
The BT Pension Scheme (“BTPS” or “the Scheme”) one of the UK’s largest private sector pension schemes with c.260,000 members and c.£36bn of assets under management1 has recently completed two longevity reinsurance transactions. These transactions further protect BTPS from the cost of unexpected increases in the life expectancy of its members.
The new longevity insurance and reinsurance arrangements cover BTPS pensioner liabilities of £5bn with Swiss Re and increases existing cover with Reinsurance Group of America (“RGA”) by £5bn, following the transaction completed using a similar arrangement in 2023. The reinsurance efficiently leverages the Scheme’s existing infrastructure which has been facilitated via the Scheme’s existing ‘captive’ insurer.
The transaction will have no impact on BT’s cash contributions to the Scheme.
The transactions were led by Brightwell, BTPS’ primary services provider and supported by WTW and A&O Shearman with Swiss Re being advised by Willkie Farr & Gallagher.
Jill Mackenzie, Chair of Trustees, BTPS said: “These transactions help to advance the development of the Scheme’s long-term investment strategy, providing increased certainty for the Scheme, our sponsor, and members.”
Wyn Francis, Chief Investment Officer, Brightwell, said: “Brightwell’s leading role in delivering two concurrent longevity swaps demonstrates the value in a fully integrated fiduciary manager. These transactions will be onboarded to Brightwell’s automated, efficient and low-cost operating platform, reinforcing our experience and capability in managing all Scheme risks to achieve market leading outcomes for a Scheme in run-on.”
Emma Ferris, Managing Director, RGA UK, said: “We are delighted to have once again partnered with BTPS on this transaction, further supporting the Scheme’s aims of stability and financial security of retirement benefits for its members.”
Kerry McMullan, Head L&H Structured Solutions, Swiss Re, said: “We are very grateful for the opportunity to bring our financial strength and longevity risk structuring experience to BTPS to make the Scheme more resilient to uncertain future life expectancies and helping it provide secure retirement benefits to its membership.”
1 Figures as at June 2024
Remembering Nigel Cotgrove
The BT Pension Scheme Trustee Board is saddened to announce that Trustee Director Nigel Cotgrove has passed away. He was a former union officer with over 20 years’ experience in pensions and served as Trustee for six years. Known for his dedication to representing members’ interests, he was respected by many in his roles across various organizations.
BT PENSION SCHEME APPOINTS HELEN CHARNLEY AS TRUSTEE DIRECTOR
The BT Pension Scheme has announced the appointment of Helen Charnley as an employer nominated Trustee Director, succeeding David Viles. Helen, previously the Director of Group Audit, Risk and Controls at BT Group, brings deep experience in audit and risk to the Trustee Board.
BTPS Summary Funding Statement
The BTPS Trustee is responsible for ensuring that the Scheme has sufficient funds to pay its liabilities (benefits to members). This Summary Funding Statement provides members with a summary of the latest interim assessment of the Scheme as at 30 June 2024.