BT Pension Scheme Agrees Deal to Protect it Against Longevity
By Ian Walker
LONDON--BT Group PLC (BT.A.LN) said Friday its pension scheme trustee has agreed a deal to protect it against its members living longer than currently expected.
Under the deal, the scheme's exposure to longevity risk will be transferred to a new insurance subsidiary, which will be reinsured with The Prudential Insurance Company of America, a U.S. based life insurance company.
The arrangement covers over 25% of pension scheme's total exposure to improvements in longevity, covering about 16 billion pounds of its liabilities at October 2013, the pension scheme said.
These arrangements will not require additional contributions to be made by BT Group.
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(END) Dow Jones Newswires
July 04, 2014 03:14 ET (07:14 GMT)