Buy-out
\baɪ\-\aʊt\
The purchase of bulk annuities by a pension plan, resulting in the transfer of all governance and control of the assets to the insurance company. This process fully discharges the pension plan’s obligations for the covered members.
In the UK, a full buy-out typically involves securing benefits for all participants in the pension plan. In contrast, partial buy-outs (often known as "lift-outs") are permitted in jurisdictions like the US and Canada, allowing plans to secure benefits for a subset of members while retaining responsibility for others.
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