This transfers the "longevity risk" from the company to the individual.
The Reed Elsevier Pension Scheme is managed by a Trustee board that explicitly seeks to limit the risk of assets failing to meet long-term liabilities. Impact on Participants and the Company reed elsevier pension buyout
: The company identifies changes in market values of scheme assets and valuation assumptions as potential risks to its business operations. This transfers the "longevity risk" from the company