Pension buyout: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
(Add link.) |
(Add link.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 13: | Line 13: | ||
* [[Buyout]] | * [[Buyout]] | ||
* [[Defined benefit pension scheme]] | * [[Defined benefit pension scheme]] | ||
* [[De-risk]] | |||
* [[Insurance]] | * [[Insurance]] | ||
* [[Longevity]] | * [[Longevity]] | ||
| Line 18: | Line 19: | ||
* [[Pension liabilities]] | * [[Pension liabilities]] | ||
* [[Pension scheme]] | * [[Pension scheme]] | ||
* [[Run-on]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 18:18, 4 September 2024
A pension buyout enables a sponsoring employer to completely wind up its pension scheme by transferring both the pension assets and the pension liabilities to an insurance company.
The insurance company becomes responsible for honouring pension promises as scheme members retire.
Pension buyouts usually include the payment of a cash premium to the insurance company.
Once the buyout is complete, all links with the former sponsor and pension trustees are severed and the pension scheme member is issued with a contract from the insurance company.
