RT Journal Article SR Electronic T1 Liability Transfer Using Annuity-in-Kind Portfolios: An Effective Risk Management Approach for Plan Sponsors JF Special Issues FD Institutional Investor Journals SP 37 OP 44 VO 2013 IS 1 A1 Dan Tremblay A1 François Pellerin YR 2013 UL https://pm-research.com/content/2013/1/37.abstract AB Sponsors of defined-benefit pension plans are increasingly considering the annuitization of liabilities as an effective tool for risk management. In the context of annuitization, the transfer of assets through an annuity-in-kind (AIK) portfolio may be the most cost-effective way to complete the transaction, as an AIK portfolio may merit a discount on the premium charged by the annuitizing counterparty. This article describes some of the challenges of both planning and executing a liability transfer using an AIK portfolio, with some discussion of how to mitigate those challenges. It concludes by revealing a few key ways in which plan sponsors can begin to prepare for the possibility of an AIK transfer in the future, even if a large risk transfer event is not under immediate consideration. Indeed, the construction of an AIK-friendly asset portfolio may be a powerful risk management tool in itself.