UBS and Aegon launch alternative to pension fund buy-out

Known as the Affordable Risk Transfer Solution (ARTS), the service supports the delayed buy-out of pension funds with liabilities valuing more than £100 million.

According to the two firms, trustees of such funds might want to eliminate a fund deficit but be unable to do so owing to a lack of cash, particularly in challenging market conditions.

ARTS aims to provide the opportunity to eliminate a deficit by creating a so-called 'longevity lock', a defined period (typically seven years) during which