This transfers the "longevity risk" from the company to the individual.
: The company identifies changes in market values of scheme assets and valuation assumptions as potential risks to its business operations. reed elsevier pension buyout
: The company has largely closed legacy DB plans to new members, opting for a Group Personal Pension model that offers greater portability for modern employees who change jobs more frequently. The Mechanics of "Buyouts" at RELX This transfers the "longevity risk" from the company
For the company, it eliminates the obligation for future monthly payments and reduces administrative overhead. The Mechanics of "Buyouts" at RELX For the
While the term "buyout" can refer to corporate acquisitions, in a pension context, it typically follows these two paths:
: Reed Elsevier's defined benefit schemes have historically held significant assets and liabilities—for instance, the UK scheme was valued at over £2 billion as early as 2007.
: RELX has offered eligible participants the choice to receive their benefits as a one-time lump sum .