The purchase by the trustees of a pension scheme of an insurance policy or bond in the name of a member or other beneficiaries following termination of service, retirement, or on winding-up of a scheme. The bond is bought in substitution of the members rights under the pension scheme. Under the Pensions Act, 1990, purchase of such a bond on leaving service may be at the option of the member or, in certain circumstances, at the option of the trustees. See also ‘personal retirement bond’.