Abstract: A method and system of defeasing the pension liabilities of a business entity as a sponsor of an employee pension plan, comprises determining the value of the existing assets and liabilities associated with a pension plan of a transferor business entity; transferring the pension plan, with its associated existing assets and liabilities, from the transferor business entity to a transferee business entity; transferring pension staff employees from the employ of the transferor business entity to the employ of the transferee business entity; determining whether any shortfalls exist in existing plan assets transferred relative to existing liabilities transferred, and, to the extent that a shortfall is determined to exist, creating additional liabilities to the transferor business entity and corresponding additional assets for the transferee business entity to cover at least part of said shortfall; and securitizing and collateralizing the existing and additional assets and liabilities held by the business entities.