Lockheed Martin Transfers $4.9 Billion to Athene

Lockheed Martin transferred $4.9 billion in pension obligations to two of Bermuda based Athene’s subsidiaries, Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York. This is Lockheed’s second pension risk transfer transaction with Athene. This pension de-risking transfer affects some 18,000 participants of Lockheed Martin’s pension plan who are […]

IDEX Corp. Transfers Remaining US Pension Liabilities

Northbrook, Illinois based IDEX Corp., purchased a group annuity contract from Legal & General and terminated its US pension plan on June 17, 2021. According to its 8-K filing,  IDEX used a combination of lump-sum payments and the group annuity contract to settle its remaining obligations to its retirees and their beneficiaries.

Arconic Corporation Transfers $1 Billion to Mass Mutual

In April 2021, Arconic Corporation, the aluminum provider based in Pittsburgh transferred $1 Billion in pension liabilities to Massachusetts Mutual Life Insurance Company. This transaction affected approximately 8,400 Arconic retirees or beneficiaries. Prior to the transfer, Arconic made a $250 million contribution to its US pension funds. MassMutual will assume responsibility for making payments to […]

Sonoco Products Company De-Risks Buying Annuity from Athene

Hartsville, South Carolina based Sonoco Products Company, an international provider of consumer and industrial packaging, transferred its pension liabilities for approximately 8,300 plan participants and their beneficiaries under the Sonoco Products Pension Plan for Inactive Participants to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York. In May 2021, […]

Philips North America Transfer Pensions to MetLife and Principal

Philips North America has transferred $1.2 Billion of pension liabilities to MetLife and Principal Financial Group. This transaction affects approximately 11,000 retirees and their beneficiaries. MetLife will administer the benefits and will be financially responsible for 75% of the liabilities. Principal has sole responsibility for approximately 2,000 deferred participants.    

Recap of Recent Pension De-Risking Transactions

February 2020:  Armstrong World Industries transfers $1 Billion for 10,000 retirees to Athene December 2020: Lockheed Martin transfers $1.4 Billion of pension liabilities for 13,500 retirees to MetLife December 2020: Phillips North America transfers $1.2 Billion in pension liabilities for 11,000 retirees to MetLife and Principal December 2020:  GE transfers $1.7 Billion of pension liabilities […]

2020 Pension De-Risking Transfers with Undisclosed Insurance Co.’s

Not all companies who offload their pension liabilities to insurance companies disclose the name of the company taking on the pension liabilities. Below is a recap of some 2020 transfers, as reported by S&P Global Market Intelligence. Teradyne Inc. – $24.4 Million Lockheed Martin – $793 Million Kellogg Co. – $470 million Newell Brands Inc. […]

GE Transfers $1.7 Billion to Athene

In late 2020, GE transferred $1.7 Billion in pension liabilities to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York. This transaction affects approximately 70,000 retirees who have been receiving benefits from GE’s pension plan. Bermuda based Athene Holding has purchased more than $18.5 Billion in pension liabilities affecting over […]

Athene Takes over Pension Liabilities from JC Penney

JCPenney, the ailing retailer, declared bankruptcy in May 2020 and sold off its retail operations before emerging from Chapter 11 at the end of 2020.  In early April, Athene Holding took over $2.8 Billion of JC Penney’s pension obligations, completing the termination of JCPenney’s pension plan. Two of Athene’s wholly owned subsidiaries, Athene Annuity and […]

Pension Risk Transfer – 2020 Facts

Facts from 2020 First Quarter 2020: • “Buy-out” purchases $4.462 Billion Second Quarter 2020: • “Buy-out” purchases were $2.270 Billion Third Quarter 2020: • “Buy-out” purchases were $4.599 Billion Fourth Quarter 2020: • “Buy-out” purchases were $13.680 Billion Total “Buy-out” contracts for 2020: 432 Total of “Buy-out” purchases: $25 Billion Total Number of Retirees Affected: […]