By transferring all or part of your company’s pension liabilities to AEGON, you can remove the risks associated with your defined benefit plans, protecting your company from both short-term volatility and long-term uncertainty.
Transferring risks, removing uncertainty
As accounting standards become more stringent and companies move towards fair value accounting, company pension liabilities are increasingly visible on the balance sheet debt. As a result, fluctuations in the financial markets can have a major and immediate impact on your company’s share price. Also, as people are living longer, the potential financial risk to plan sponsors is also increasing.
By transferring all or part of your company’s pension liabilities to AEGON, you can remove the risks associated with your defined benefit plans, protecting your company from both short-term volatility and long-term uncertainty. Your pension fund members will receive their full pension and you can focus on running a profitable business.
What is a pension buyout and buy-in?
Both the buyout and buy-in transfer the liability risks (interest rate, inflation and longevity risk) of passive participants from a pension fund to a third party. With a buyout, all pension liabilities and participants are transferred to the insurance companies, enabling the liquidation of the pension fund if there are no active participants left in the pension fund.
With a buy-in, all pension liabilities and participants remain with the pension fund. A buy-in can increase the funding ratio and decrease the required solvency ratio of the pension fund, while the pension fund retains full control over the distribution of returns, benefit payments, and communication with the participants. It does not require approval from the local legislator or plan participants. A buy-in can also form a practical first step towards a full buyout at a later time.
Seize the opportunity
To find out more on buyouts and buy-ins in the Netherlands, please read the brochure or contact us.
