NBC’s Gretchen Morgenson on Pension De-Risking

Senior financial reporter for the NBC News Investigative Unit, Gretchen Morgenson delved into the issue of pension de-risking in an exposé published on June 14, 2020. Morgenson interviewed Karen Friedman of the Pension Rights Center, Thomas Gober, a certified fraud examiner who has worked as a consultant to the U.S. Department of Justice, and Joseph Belth, professor […]

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Athene Fined $45 Million

Athene Holding Ltd. paid a $45 Million fine to the State of New York for violations related to its pension de-risking business operated by its subsidiary Athene Annuity & Life Corporation. The New York State Department of Financial Services (DFS) discovered that Athene both solicited and did insurance business in New York without a license. According […]

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Connecticut Law Protecting Retirees

Public Act 15-167 providing creditor protections to Retirees in pension de-risking transfers took effect on October 1, 2015.   Prior to the enactment of this ground-breaking legislation, annuity payments intended for retirement could be garnished by creditors in Connecticut. The legislation was sponsored by Rep. Robert Megna (D-97), Chair of the Connecticut State Insurance Real Estate […]

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General Motors Transfers Pension Liabilities to Prudential

In 2012 General Motors (GM) embarked on a mission to offload $26 Billion in pension liabilities through lump-sum buyouts and the purchase of a group annuity contact from Prudential Insurance Co. of America. In November 2012 Prudential and GM closed on the largest pension de-risking transfer worldwide. This pension de-risking transfer involved the exchange of […]

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Verizon Communications Transfers $7.5 Billion of its Pension Liabilities

Verizon Communications Inc. agreed to purchase a group annuity contract from Prudential Insurance Co. of America to transfer $7.5 billion in pension obligations, according to its SEC filings. This transfer was considered a “lift-out” because Verizon did not terminate its pension plan.  This pension de-risking transaction covered approximately 41,000 retired salaried employees who began receiving […]

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General Motors Announces Its Intention to Purchase Annuity from Prudential

In a press release General Motors announced its intention to embark on an ambitious plan to rid its retirement plan of more than $26 Billion in pension liabilities.  The de-risking plan affected those who retired from GM between October 1, 1997 and December 1, 2011, and offered GM Retirees a one-time, single lump-sum payment or […]

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