Pension buyout
From ACT Wiki
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.
