Babcock International Group has entered into a longevity swap for a second defined benefit (DB) pension scheme.
The firm implemented the first ever longevity swap for a UK pension scheme earlier this year.The new 50-year swap agreement, with Credit Suisse, hedges out mortality risk for an additional 7,00 pensioners, as well as their dependents and spouses.
Andrew Birkett, group pensions manager, said: “All contracts [within the business] are about stability within
the group and we didn’t want pensions coming in and upsetting that stability.”
It is now planning to enter into a third swap agreement for its main Babcock International defined benefit scheme.
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