Pension buyouts: what can the USA learn from the UK experience?
by Ashby H.B. Monk
International Journal of Financial Services Management (IJFSM), Vol. 4, No. 2, 2010

Abstract: This paper analyses the UK market for Defined Benefit (DB) pension buyouts and considers its implications for the USA. A DB pension fund buyout refers to a transaction in which a pension plan sponsor pays another company a fee to take over the assets and liabilities of the pension plan. Using various qualitative methodologies, this paper traces the evolution of the buyout from a transaction for insolvent plan sponsors to a transaction for solvent plan sponsors with funded pensions. While certain types of solvent buyouts have fallen out of favour, such as non-insured buyouts, this paper concludes that buyouts of the insured variety have a bright future. The increasingly burdensome nature of the DB pension plan will sustain this market over the long term. As such, this paper contributes to our understanding of the future prospects for employer-sponsored DB pensions, and how they will contribute to retirement income over time.

Online publication date: Fri, 02-Apr-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Financial Services Management (IJFSM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com