Uncertainty over the future cost of benefit provision has led some plan stakeholders to search for an insurance-based solution. A Pension Annuity Transaction can provide this by way of a group annuity contract that will provide all (or some) of the plan’s future benefits for the life of its beneficiaries.
- Completing a Pension Annuity Transaction usually means that the pension scheme in-scope benefits are fully insured against all future uncertainties, other than the risk of insurer default.
- The risk or uncertainty associated with the pension scheme benefits can be significantly reduced or removed altogether
- Removal of all future plan running costs is possible if a transaction is completed in respect of the entire pension plan
- Peace of mind or closure for all pension scheme stakeholders is possible