Plan terminations were 66% of first-half U.S. pension risk transfer deals, October Three says

Plan terminations accounted for 66% of U.S. pension risk transfer deals in the first half of 2026, October Three Consulting said in its 2026 PRT Trend Report, as reported by PLANADVISER. Participant lift-outs, which move the liabilities of retirees already receiving benefits, made up 28%.

U.S. pension risk transfer sales have slowed, and insurers expect both the number of transactions and the net asset amount to fall in 2026 from 2025, according to the report.

MetLife’s 2026 Pension Risk Transfer Poll, released October 7, found a record 95% of defined-benefit plan sponsors reporting de-risking goals, up from 76% in 2019. Among sponsors with de-risking goals, 88% said they were considering a PRT with an insurer.

“The question is no longer whether sponsors will de-risk, but how and when,” Elizabeth Walsh, MetLife’s vice president and head of U.S. pensions, said in a statement.

Eighty percent of respondents plan to completely divest their pension liabilities within five years, consistent with last year’s poll. Among those open to a PRT, 32% expect to complete a deal within two years and 56% within two to five years; 3% said their plans have been delayed or paused.

Half of respondents cited interest rates as the main reason to pursue a PRT, up from 41% a year earlier, and 62% said current rates have provided favorable annuity buyout pricing. Last year, 45% named market volatility as their top catalyst.

In the poll, annuity buyouts remain the dominant structure, with 76% of respondents expecting to complete one, either alone or with a lump-sum distribution. Among those planning a buyout, 67% expect a retiree lift-out, rising to 82% for plans with at least $3 billion in defined-benefit assets.

The surveys measure different things—October Three counts completed transactions, while MetLife measures sponsor intent—but both point toward full plan exits. Fewer than a third of sponsors open to a PRT expect to close one within two years, even as insurers predict fewer and smaller transactions in 2026 than in 2025.