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Pension Buyout Deals to Hold Steady in 2020 Despite Pandemic

Nov. 2, 2020, 11:30 AM

The coronavirus outbreak briefly interrupted the burgeoning pension buyout market this summer, but analysts still expect employers to unload $20 billion to $30 billion in retirement benefits on insurance companies this year.

Pension buyouts, or risk transfer deals, involve employers ridding themselves of long-term costs by transferring pension liabilities to insurers who agree to cover the promised benefits. Sellers get to trim their expenses while insurers gain new customers for their annuity products.

Such deals totaled $4.5 billion during the first quarter of 2020, followed by $2.3 billion during the second quarter, according to the Secure Retirement Institute at ...