Pension Corporation Launches New Insurance Product

Pension Corporation, a provider of pension solutions, has launched a new insurance product to protect defined benefit pension funds and their sponsors against the cost of pensioners living longer than expected.

Pension Insurance Corporation is a wholly owned subsidiary of the Pension Corporation group.

Pension Insurance’s longevity insurance policy will reimburse pension funds for the cost of any future pension payments that arise from pensioners living longer than expected.

In return for this protection pension funds will pay fixed annual premiums set at the inception of the policy. The comprehensive policy will remain in force until the death of a pension fund’s last covered pensioner or their dependant, such as a spouse.

Mark Weinberg, chairman of Pension Corporation, said: “Pension Corporation is in business to create solutions for pension funds that protect members’ benefits by mitigating the significant risks they bear. We are pleased to offer an insurance product from Pension Insurance Corporation that comprehensively covers the specific risk of longevity.

“Pension Insurance Corporation has the capacity and expertise to insure longevity risk now. Our approach will be to work closely with a pension fund, its trustees and advisers to tailor solutions that are appropriate to a fund’s longevity profile and presented in a clear policy.”