What term describes the insurer selling pension plan annuities that match pension obligation rates?

The term that accurately describes the insurer selling pension plan annuities that match pension obligation rates is pension buy-in. In a buy-in arrangement, the pension plan purchases annuities from an insurer to cover the pension obligations for a group of beneficiaries. The annuities ensure that the funds are available to meet future pension payments, matching the pension obligations effectively.

This approach allows the pension plan to mitigate its investment and longevity risks, as the insurer takes on the responsibility of making the scheduled payments. Consequently, the pension plan can achieve a more stable funding status by aligning its liabilities with predictable annuity payments.

In contrast, pension cancellation refers to the complete termination of a pension plan. Pension transfer involves moving pension obligations from one entity or plan to another, often seen in mergers or acquisitions. Pension liquidation typically refers to the process of closing a pension plan and disbursing its assets, which does not directly relate to acquiring annuities for matching pension obligations.