Longevity swap

On 11 December 2020 the Trustee of the Barclays Bank UK Retirement Fund (the UKRF) completed a £5bn longevity swap with Reinsurance Group of America, Incorporated (RGA). The longevity swap helps protect the UKRF from the financial risk of an unexpected increase to life expectancy for current pensioners. This is another important step in the Trustee’s journey to reduce risks in the UKRF, and makes the UKRF more secure for the benefit of all members. Members will see no changes to their benefits, which will continue to be paid directly by the UKRF Trustee.

The longevity swap makes assumptions about how long pensioners will live. In the event that pensions are paid out for longer than expected then the swap would provide income from RGA to the UKRF.

Peter Goshawk, the Chairman of the Trustee, said “In addition to the material reduction of deficit revealed at the 2019 actuarial valuation, the longevity swap is another significant step in our de-risking journey for the UKRF, improving benefit security for all members. I would like to thank Barclays for their support on this project and also to thank the Barclays pension team, RGA and our advisers, for helping us to complete a successful transaction.”