4th Jul 2014 06:32
LONDON (Alliance News) - BT Group PLC said Friday the trustee of the BT Pension Scheme entered into longevity insurance and reinsurance arrangements to protect the scheme against costs associated with potential increases in life expectancy.
The arrangements will provide long-term protection and income to the scheme should members live longer than currently expected.
The trustee has set up a wholly owned insurance company, and the scheme has transferred longevity risk to this insurer, who has in turn re-insured the risk with The Prudential Insurance Co of America, a subsidiary of Prudential Finance Inc.
The arrangements will not require any additional contributions from BT.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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