In exchange for a lump sum premium, Sun Life makes a monthly payment to the pension plan to cover pension payments to the covered members. This includes retirees as well as deferred and active members. The pension plan (not Sun Life) continues to pay each member directly. An annuity buy-in can therefore be considered as an investment of the plan.
Annuity buy-ins provide most of the same great benefits as annuity buy-outs, along with added flexibility for plan sponsors.
1Plan sponsors should confirm the need for an accounting treatment settlement with their own auditors.