BAE Systems has implemented a longevity insurance arrangement for its defined benefit (DB) pension scheme.
The arrangement, with Legal and General, insures the BAE Systems 2000 Pension Plan against the financial risk of its 31,000 current pensioners living longer than expected, and covers £2.7 billion of liabilities.
Legal and General will retain 30% of the longevity risk, with the remainder being reinsured by Hannover Re. The trustees of the pension scheme were advised by Aon Hewitt.
Nigel Tinsley, group pensions director at BAE Systems, said: “This arrangement offers us a flexible approach to managing the key risk of longevity in the plan.”
Martin Bird, partner and head of risk settlement at Aon Hewitt, added: “The insurance arrangement is fully collateralised and tailored to reflect the plan’s unique profile, bringing together structuring capability and market capacity to enhance members’ security and reducing the funding volatility in the plan.”
I have been advised by The pension servise tracing servise. To get intouch with you as I might be entitled to some pension through my privious employment. I left school in 1955 and worked as an apprentise with A.V.Roe, which later became Hawrker Siddley. My National insurence No is ZT.15-75-66-B. All so I lived in Lincoln if that helps. Regards R Brett