Pension Risk Transfer Market Continues to Grow

The growth in popularity of pension risk transfer deals is not slowing. LIMRA’s ongoing tally of pension risk transfer activity shows that the total value of these deals in the first quarter of 2024 increased 124% compared to the first quarter of 2023. During Q1 of 2023, over $6.3 billion in PRT deals were concluded. This jumped to a total value of $14.2 billion in PRT deals for the first quarter of 2024.

A number of groups of retirees have begun using the courts to push back against these transactions, asking federal courts in Massachusetts, New York, and Maryland to rule on whether plan participants’ interests have been sufficiently considered and protected when decisions were made to ink these deals. A&T has been sued over its decision to transfer pension liabilities to Athene. GE is currently facing similar litigation, as is Lockheed Martin.  As always, we will be keeping tabs on these new developments.