// definition
Pension risk transfer
PRT: transferring pension risks to an insurer
Short definition
An arrangement that transfers some or all of the risks associated with defined-benefit pension promises to an insurer, usually through an annuity purchase. The transaction structure and applicable law determine which liabilities move, who is legally responsible for paying benefits and which protection arrangements cover beneficiaries.
risk atlas
Knowledge map
Related analyses
Primary sources
- NAIC: Pension Risk TransferTransferring risks from a defined-benefit pension plan to an insurer.
- PBGC: AnnuitiesPBGC protection ends for benefits covered by irrevocable commitments purchased from an insurer.