Airways Pension Scheme Successfully Completes Longevity Swap
19 December 2024
The Trustees of the Airways Pension Scheme are pleased to announce the successful completion of a longevity swap insurance transaction, valued at approximately £340m. The transaction is with Metropolitan Tower Life Insurance Company, a subsidiary of MetLife which is a globally recognised financial services company. Zurich Assurance Limited acted as the intermediary insurer.
The insurance policy will form part of the Scheme’s investment portfolio and will provide income to the Scheme in the event that members live longer than currently expected. This enhances the long-term stability of the Scheme and supports its ongoing risk management strategy.
There will be no impact to your or your dependants’ pension entitlements as a result of this transaction. Your pension will continue to be paid in full by the Scheme.
We have updated the Scheme’s privacy notice to reflect two new parties that will be involved in processing your data: www.mybapension.com/aps/privacy_notice/index
We have covered some frequently asked questions below. If you have any additional questions, please feel free to contact the BA Pensions member services team.
Frequently asked questions
Do I need to do anything?
You do not need to take any action. Your pension entitlement is not affected by the transaction, and you will continue to be paid as normal by the Scheme.
Why did the Trustee complete a longevity swap transaction?
A longevity swap protects the Scheme against the financial impact of members living longer than expected. This enhances the long-term stability of the Scheme and supports its ongoing risk management strategy. It has no impact on your pension entitlement.
Who is Metropolitan Tower Life Insurance Company?
Metropolitan Tower Life Insurance Company is an insurance company based in the United States. It is a subsidiary of MetLife which is a globally recognised insurance company.
Who is Zurich Assurance Limited?
Zurich Assurance Limited is a UK insurance company that is part of the Zurich Group, another globally recognised insurance provider.
How was Metropolitan Tower Life Insurance Company selected?
The Trustee worked with professional specialist advisers to run a competitive selection process. The Trustee considered many aspects including the financial strength and credit worthiness of the insurers and the pricing and terms on offer.
Which members are covered by the transaction?
The insurance policy is not assigned to individual members, it is an asset of the Scheme and therefore helps support the security of all Scheme members.
The insurance policy will form part of the Scheme’s investment portfolio and will provide income to the Scheme in the event that members live longer than currently expected. This enhances the long-term stability of the Scheme and supports its ongoing risk management strategy.
There will be no impact to your or your dependants’ pension entitlements as a result of this transaction. Your pension will continue to be paid in full by the Scheme.
We have updated the Scheme’s privacy notice to reflect two new parties that will be involved in processing your data: www.mybapension.com/aps/privacy_notice/index
We have covered some frequently asked questions below. If you have any additional questions, please feel free to contact the BA Pensions member services team.
Frequently asked questions
Do I need to do anything?
You do not need to take any action. Your pension entitlement is not affected by the transaction, and you will continue to be paid as normal by the Scheme.
Why did the Trustee complete a longevity swap transaction?
A longevity swap protects the Scheme against the financial impact of members living longer than expected. This enhances the long-term stability of the Scheme and supports its ongoing risk management strategy. It has no impact on your pension entitlement.
Who is Metropolitan Tower Life Insurance Company?
Metropolitan Tower Life Insurance Company is an insurance company based in the United States. It is a subsidiary of MetLife which is a globally recognised insurance company.
Who is Zurich Assurance Limited?
Zurich Assurance Limited is a UK insurance company that is part of the Zurich Group, another globally recognised insurance provider.
How was Metropolitan Tower Life Insurance Company selected?
The Trustee worked with professional specialist advisers to run a competitive selection process. The Trustee considered many aspects including the financial strength and credit worthiness of the insurers and the pricing and terms on offer.
Which members are covered by the transaction?
The insurance policy is not assigned to individual members, it is an asset of the Scheme and therefore helps support the security of all Scheme members.