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pension reversion

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Pension reversion
Termination of an overfunded defined benefit pension plan and replacement of it with a life insurance company-sponsored fixed annuity plan.

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.

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