Transaction fully secures the benefits for 1,917 scheme members
WTW finds 54% of schemes have fast-tracked plans due to increase funding levels
This year set to be one of the biggest on record for bulk annuities and longevity swaps
Deal agreed 13 years after first buy-in between the scheme and insurer
Insurers are being pressed to offer bulk annuities to a wider range of scheme sizes
The Axa UK Group Pension Scheme has agreed a £3bn longevity swap with Hannover Re, insuring the longevity risk of a largely non-pensioner population.
The Reckitt Benckiser Pension Fund has secured a £415m buy-in with Scottish Widows, insuring the benefits of around half of pensioners.
Two in five UK defined benefit (DB) schemes expect to complete a bulk annuity or longevity swap transaction within the next three years, Willis Towers Watson research finds.
Covid-19 has caused a slowdown in the number of bulk annuity transactions, with buy-ins and buyouts expected to amount to a maximum of £25bn this year, Willis Towers Watson says.
The trustees of the £3bn Merchant Navy Officers Pension Fund (MNOPF) have secured £1.6bn of members’ pension benefits through a buy-in transaction with Pension Insurance Corporation (PIC).