By the end of the third quarter of 2021, pension risk transfers totaled $25.7 Billion. Mark Paracer of the Secure Retirement Institute predicts that
“the annual record of $36 billion set in 2012” will be surpassed when the final data from 2021 is published. The fourth quarter is historically the strongest quarter for PRT as many plan sponsors look to close out deals by year-end to remove their pension liability from balance sheets so they can start the year off fresh. We expect that trend to continue.”
Since 2012, more than $200 billion in retiree liabilities have been transferred to insurance companies in pension de-risking transactions, also referred to as a pension risk transfer or “PRT”. Once a PRT is complete, retirees lose all of the uniform protections intended by Congress under ERISA and retirees become subject to non-uniform state laws.