Defined Benefit (DB) Pension Risk Transfer


The year 2021 saw $38B of pension liabilities transfer from the defined benefit (DB) plans to insurers1 , a record pension risk transfer volume, with plan sponsors completing over 430 risk-transfer transactions, covering both full plan terminations and cost-saving employee lift-outs.


There were three key drivers of this activity that we expect to see continue in 2022 and beyond:


  • Pricing
  • Innovation
  • Strong insurer competition

Changes in markets and the regulatory environment underscore the importance of getting these transactions done correctly. Plan sponsors should consider working with a process-driven advisor who can not only assist in anticipating and responding to these changes from a governance perspective, but who also can help ensure that your population data and funded status are truly transaction-ready.


Learn more

For a more detailed discussion of pension risk transfer considerations for your pension plan, download our most recent plan sponsor brief on Pension Risk Transfer Market 2022.


Please see Important Notices for further information.

1 Mercer Quarterly Insurer Pension Risk Transfer Sales Survey and LIMRA annual market volume reports 12/31/21


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