As PM's sister title Pensions Week first reported in September, the £1bn deal is the first such derisking contract to involve a local government scheme, and only the third deal of its type, ofter the Babcock and RSA Insurance longevity swap deal earlier this year.

Christian Mumenthaler, head of life and health at Swiss Re, said: "This [deal] creates big opportunities for Swiss Re as market leader in life and health reinsurance. We are now pioneering longevity solutions for public sector counterparties as well as private companies, allowing them to better control the uncertainty they face with respect to longevity risk."

The contract covers 11,000 pensions that were in payment on July 31 2009. The Royal Berkshire Pension Fund will continue to pay pensioners as normal, but Swiss Re covers the risk of members' longevity rising, and will pay the extra amounts as necessary.

The fund's investment strategy and active and deferred members are not affected by the move, but it is believed to be considering options for protecting against the longevity risk attached to these members.