pension reversion

pension reversion definition - business

pension reversion

Termination of a pension plan by an employer that wishes to capture the amount by which the plan is overfunded. Pension reversions are generally accomplished by using funds in the plan to purchase a fixed annuity from an insurance company. Excess funds beyond the cost of the annuity revert to the company.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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