Bulk purchase annuity

Treasury - pensions risk - defined benefit pension schemes - pensions.

(BPA).

Bulk purchase annuities, or bulk annuities, are pension de-risking strategies used by pension fund trustees to manage and transfer some or all of the risks associated with providing final salary retirement benefits.

Under a bulk purchase annuity, an insurer takes on liabilities to pay pensions, in exchange for a payment from the pension fund.

See also

• Association of British Insurers (ABI)
• Annuity
• Buyout
• Defined benefit pension scheme
• De-risk
• Insurer
• National Association of Insurance Commissioners
• Occupational pension scheme
• Pension buyout
• Pension fund
• Pensions and Lifetime Savings Association (PLSA)
• Pensions Management Institute
• Run-on
• Trustee