Buy-in | Practical Law

Buy-in | Practical Law

Buy-in

Buy-in

Practical Law UK Glossary 4-385-9478 (Approx. 3 pages)

Glossary

Buy-in

In the context of pensions, an arrangement between the trustees of a defined benefit (DB) scheme and an insurance company under which the trustees pay a premium and in return receive an income stream to cover payment of some or all of the scheme's accrued benefits. In contrast to a buyout, a buy-in policy is held in the trustees' name as an investment of the scheme, and the scheme usually continues to deal with the payment and administration of benefits.