What is a pension insurance buy-in?

What is a pension insurance buy-in?

  • An investment decision by the trustees
  • Pension fund remains in place
  • PIC pays a stream of income to the trustees exactly matching the insured liabilities
  • PIC has no direct relationship with pension fund members

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In summary:

  • A perfectly matching investment for the liabilities that are insured
  • Removal of all longevity, market, interest rate and inflation risk from the pension fund
  • A step on the way to fully insuring all liabilities
  • A transaction that is usually, but not necessarily, focused on pensioner liabilities

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