With life expectancy rising, pension schemes face the risk that they will not be able to meet all their commitments. Longevity transactions cover this risk by insuring the schemes’ liabilities in case their members live longer than expected. In previous Corporate Responsibility Reports, we have described a number of landmark longevity transactions completed in recent years with different clients in the UK:
- The Scottish & Newcastle Pension Plan (19 000 members)
- The Aviva Staff Pension Scheme (19 000 members plus partners)
- One of AkzoNobel’s pension funds (17 000 members)
- The LV= pension fund (more than 5 000 members)
- The Royal County of Berkshire Pension Fund (11 000 members).