Prudential Staff Pension Scheme, Chelmsford, England, has entered into a £3.7 billion ($4.8 billion) longevity swap with Pacific Life Re.
The swap is the first pension risk transfer transaction for the firm, said a spokesman for Willis Towers Watson, lead adviser on the deal.
The swap covers more than 20,000 retirees and provides protection against costs that might result from unexpected increases in life expectancy for participants.
The £7 billion pension fund is the largest of sponsoring employer M&G PLC's U.K. retirement plans. M&G also sponsors a £400 million defined contribution plan.