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Aviva agrees to $8.4 billion longevity swap for its pension fund
trueAviva PLC, London, agreed to the largest ever longevity swap for its defined benefit Staff Pension Scheme, transferring the risk of 19,000 members to three reinsurers.
McCormick completes voluntary lump-sum program, paying about $63 million
trueMcCormick & Co. Inc. announced on Wednesday it completed its voluntary lump-sum program for certain former employees in the fourth quarter of its fiscal year 2013.
AstraZeneca's U.K. pension fund secures £2.5 billion longevity swap
trueAstraZeneca Pension Fund Trustee, Cheshire, England, has entered into a £2.5 billion ($4.1 billion) longevity swap with Deutsche Bank, confirmed Matt Wilmington, partner at Aon Hewitt, the lead adviser to the fund.
U.K. pension fund longevity swap deals timeline
trueNotable U.K. pension fund longevity swap deals since 2010.
Mercer: Buyout vs. economic cost of pension funds at smallest margin in 2013
trueThe cost of purchasing annuities from an insurer decreased to 108.3% of the value of transferred liabilities in October from 108.9% the previous month, according to Mercer’s U.S. Pension Buyout Index.
More pension liability offloading by corporate plans expected
trueVastly improved funding of corporate defined benefit plans should lead to more pension buyouts and lump-sum offers like the deal announced on Nov. 13 by SPX Corp., Charlotte, N.C.
NCR Corp. to wind up U.K. pension plan in $1 billion buyout
trueNCR Corp., Duluth, Ga., announced on Tuesday it has entered into an annuity buyout agreement with Pension Insurance Corp. for the defined benefit pension fund for NCR Ltd., its U.K. subsidiary.
SPX offloads $800 million in pension risk; MassMutual to take portion in buyout
trueSPX Corp., Charlotte, N.C., entered into an annuity buyout contract with Massachusetts Mutual Life Insurance Co., confirmed Ryan Taylor, director of investor relations.
Corporate pension execs wary of derisking fallout
trueCorporate executives are bracing for regulatory judgment calls on how they handle derisking through lump-sum payments and annuity purchases, lobbyists say.
Pension buyouts expected to surge — but not yet
truePension buyouts have been in a lull so far in 2013, but insurers and consultants expect a rush by corporate defined benefit plans in the next several years.
U.K. hotel group completes pension buyout
trueInterContinental Hotels Group PLC has completed a buyout of its U.K. pension fund with Rothesay Life.
Canadian regulator: Pension funds should understand risk of swap contracts
trueCanada's Office of the Superintendent of Financial Institutions on Thursday said it expects administrators of all federally regulated pension funds in Canada to understand the risks involved in entering into insurance or swap contracts.
Pension buyouts might increase risk for plan, report finds
truePurchasing a pension buyout for retirees might increase risk for the pension fund and result in greater costs to the company than the premium paid to an insurer, according to a report from J.P. Morgan Asset Management.
Judge dismisses suit over Verizon buyout
trueA federal judge on Monday dismissed a suit by Verizon Communications Inc. management retirees contesting the company's decision to purchase a group annuity contract from Prudential Insurance Co. of America.
Greenwich: Lump-sum buyouts to continue, despite slow start in 2013
trueThe volume of lump-sum buyout offers has slowed dramatically so far in 2013 following a flurry of activity last year, but lump sums remain a forefront topic for corporate pension funds.