UK’s pension regulator warns over longevity swap lock-ins

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Provider lock-in and inappropriate contracts may make it difficult for pension schemes entering into longevity swap deals to move to a full buy-in further down the line, the UK’s pensions regulator has warned.

Simon Wasserman, senior actuary with Brighton-based The Pensions Regulator (TPR), said pension schemes looking to sign longevity swap deals should be aware of the limits such deals may impose on them when looking at other ways to de-risk in future and should demand explicit break-clauses i