RT Journal Article SR Electronic T1 Supplanting Cash in Annuity Buyouts: Asset-in-Kind Transfers Move toward Mainstream JF Special Issues FD Institutional Investor Journals SP 14 OP 17 VO 2016 IS 1 A1 Wayne Daniel YR 2016 UL https://pm-research.com/content/2016/1/14.abstract AB The use of asset-in-kind (AIK) transfers—whereby plan assets are transferred to the insurer as part of an annuity buyout—has been prolific in the United Kingdom for many years. In U.S. pension risk transfer (PRT) transactions, annuity buyouts have traditionally been limited to cash generated by liquidating plan assets. Since crossing the pond a few years ago, AIK transfers have become an established practice, and U.S. insurers have become more efficient and flexible in the size of transactions they can accommodate. An AIK transfer is feasible when the plan’s investment assets are similar to those the insurer would hold to back the obligations—although as the market evolves, additional asset classes, including alternatives, may be acceptable to only a handful of insurers. This article explains the benefits and suitability of AIK transfers as an attractive alternative to cash in an annuity buyout and outlines practical considerations for working with an insurance company to structure an AIK transfer.