A pension buyout (alternatively buy-out) is a type of financial transfer whereby a pension fund sponsor (such as a large company) pays a fixed amount in order to free itself of any liabilities (and assets) relating to that fund. The other party, usually an insurer, receives the payment but takes on responsibility for meeting those liabilities. Since the liabilities associated with a fund, particularly those associated with defined benefit schemes, are not known precisely at the time of the buyout (as they depend upon how long the members live and investment returns on the fund assets among other factors), the transaction is regarded as a form of de-risking for the sponsor. From 2006 onwards, buyouts of this sort have become increasingly popular in both the United States and the United King