Pacific Transferred Buy-Out 

A "buy-out" strategy provides plan sponsors with a way to remove pension risk and benefit liability from the plan on either a partial (covering a portion of plan participants) or full (complete plan termination) basis.



Key Features

  • Guaranteed group annuity contract that transfers all future obligations and all risks from the plan sponsor to Pacific Life for the covered group
  • Completely removes the liability from the plan sponsor’s balance sheet
  • Plan sponsor is no longer subject to premiums payable to the Pension Benefit Guarantee Corporation (PBGC)
  • Pacific Life issues individual annuity certificates and makes all payment directly to annuitants
  • Pacific Life provides all annuitant servicing and bears all administrative expenses
  • May be funded in either Pacific Life’s general account or a separate account.

When to Use

  • For the complete or partial plan terminations of defined benefit and nonqualified deferred compensation plans
  • To reduce risk and/or administrative expenses and investments (PBGC premiums, audit, actuarial evaluations, etc.)