Buy-Out Bonds are also known as which?

Buy-Out Bonds are also known as which?

• A. Personal Pension Bonds
• B. Personal Retirement Bonds
• C. Executive Retirement Bonds
• D. Pension Adjustment Bonds

Answer: (B)

A Buy-Out Bond is a personal vehicle used to transfer or “buy out” accrued benefits from an employer scheme into a personal arrangement that will provide retirement income. In exam terminology, this is described as a Personal Retirement Bond—the personal contract that carries forward the pension entitlement outside the employer’s scheme. This naming captures the purpose: converting the employer-backed rights into a personal retirement plan that you own and manage. The other options don’t fit this usage: a Personal Pension Bond refers to a broader personal pension product, an Executive Retirement Bond isn’t a standard term for this concept, and a Pension Adjustment Bond isn’t used in this context.

A Buy-Out Bond is a personal vehicle used to transfer or “buy out” accrued benefits from an employer scheme into a personal arrangement that will provide retirement income. In exam terminology, this is described as a Personal Retirement Bond—the personal contract that carries forward the pension entitlement outside the employer’s scheme. This naming captures the purpose: converting the employer-backed rights into a personal retirement plan that you own and manage. The other options don’t fit this usage: a Personal Pension Bond refers to a broader personal pension product, an Executive Retirement Bond isn’t a standard term for this concept, and a Pension Adjustment Bond isn’t used in this context.