no background 1 |
no background 2 |
Pacific Insured LDI |
Pacific Secured Buy-In |
Pacific Trasferred Buy-Out |
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|
Liability settled with insurer |
|
|
✔ |
Contract held as asset in trust |
✔ |
✔ |
|
Insurer bears demographic gain/loss experience relative to assumption (e.g. mortality) |
|
✔ |
✔ |
Does not trigger settlement accounting |
✔ |
✔ |
|
Insurance Premium Calculation |
Underwritten at individual participant level |
|
✔ |
✔ |
Uses insurer's assumptions and discount curve |
|
✔ |
✔ |
Uses plan-provided cash flows and discount curve |
✔ |
|
|
Interest rate locked in at contract initiation (true for Insured LDI if contract not revoked/amended) |
|
✔ |
✔ |
Insurance Fees |
One-time lump sum |
|
✔ |
✔ |
Annual basis point fee |
✔ |
|
|
Cash Flows |
Payments directly to plan participants from insurer |
|
|
✔ |
Payments to plan trust |
✔ |
✔ |
|
Contract Liquidity |
Revocable at contract value without financial penalties (only Insured LDI allows discretionary revocation) |
✔ |
✔ |
|