// definition
Buy-in / buy-out
Two UK pension insurance arrangements
Short definition
In the UK, a buy-in is an insurance policy held as a pension scheme asset: the insurer pays the scheme, whose trustees remain legally responsible for benefits. A buy-out makes the insurer directly responsible to covered members. The distinction rests on who owes the benefits, including when a buy-in covers every member.
risk atlas
Knowledge map
Related analyses
Primary sources
- The Pensions Regulator: insurance solutionsBuy-ins and Buy-outs sections: scheme policies, trustee responsibility and the insurer’s direct obligation.