ITV PLC Pension Scheme, Preston, England, completed a deal to offload its longevity risk to Credit Suisse, confirmed David Robbins, senior investment consultant at Towers Watson, which was lead adviser to the £2.4 billion ($4 billion) plan.
As part of a longevity swap agreement, the media company's pension fund will pay a fixed rate to the bank, which will pay the fund the costs of pension benefits to about 12,000 retired plan members and dependents. Mr. Robbins declined to give the period of the agreement, however the net present value of the fixed payments is £1.7 billion. The deal can be altered in the future to include new retirees.
The deal should not affect the plan's asset allocation or manager lineup, Mr. Robbins said.
Mike Large, spokesman for ITV PLC, did not respond to a request for comment.