Longevity Insurance Agreement Sample Contracts
BCE and Sun Life longevity insurance agreementLongevity Insurance Agreement • March 25th, 2015
On March 3rd, 2015, BCE and Sun Life announced an agreement to transfer the longevity risk associated with $5 billion of Bell’s defined benefit (DB) pension plan liability to Sun Life. (Longevity risk arises from increased pension plan costs when pensioners live longer than expected.). Under the new longevity insurance agreement, the Bell Canada pension plan pays monthly premiums to Sun Life and, in exchange, Sun Life makes monthly pension payments into the plan for the lifetime of existing DB pensioners (~40 years). The net difference between the monthly payments made by both parties is relatively small. BCE maintains full responsibility for the Bell pension plan and related payments to pensioners. Notably, the Bell/Sun Life longevity
PILKINGTON SUPERANNUATION SCHEME AGREES PENSION FUND LONGEVITY INSURANCELongevity Insurance Agreement • September 10th, 2021
Pilkington Group Limited and the Trustee of the Pilkington Superannuation Scheme (‘PSS’) have agreed a longevity insurance arrangement with Legal & General Assurance Society, intended to increase the security of the Scheme for all its members and to reduce exposure to the volatility of longevity forecasts. The contract covers approximately 11,500 pensioners in the PSS, who together account for approximately 60 percent of the Scheme’s total liabilities.