Pensions
Half of DB Sponsors Plan to Stay in the ‘Pension Ecosystem’
As funding levels have improved, corporate finance officials are looking instead at plan design and risk management options, Mercer research found.
Tag: Pension Risk Transfer
Pensions
Rising Discount Rates Push Pension Risk Transfer Costs Lower in April
Transferring retiree assets now costs an estimated 101.1% of a plan’s accumulated benefit obligation.
Asset Allocation
Market Volatility, Litigation Slow PRT Deal Flow
Solutions could include consideration of plan design and lifetime income options for plan sponsors and participants.
Pensions
PRT Costs Rise in March, while Volumes Fall
Amid up-and-down markets, the estimated cost to transfer plan liabilities to insurers rose to 102.5% of accumulated benefits obligations.
Pensions
Broad PRT Market Growth Continued in 2024
LIMRA reported single-premium pension risk transfer sales hit $51.8 billion last year.
Corporate Moves
Legal & General to Sell 20% Stake in PRT Business to Meiji Yasuda
In addition to the pension risk transfer stake, the Japanese insurer will acquire all of L&G’s U.S. protection business in a total $2.3 billion deal.
Pensions
Sanofi, Legal & General Complete $1.74B Annuity Buy-In
The plan’s second transaction with L&G kicks off 2025, which could be another record year for pension risk transfer volume.
Pensions
Clarks Footwear, Pension Insurance Corp. Complete $677M Annuity Buy-In
The pension risk transfer will cover 8,000 beneficiaries and could set the stage for a record-setting year in transaction volume.
Pensions
Weyerhaeuser, State Street Sued in PRT Lawsuit
Timberland company sued by former employees, represented by Schlichter Bogard LLP, over a pension risk transfer it conducted with Athene in 2019.
Pensions
Wates Group Pension to Transfer 1,500 Members to UK ‘Superfund’
$267 million in assets will move to Clara-Pensions, the company’s third such transaction—but first with an active sponsor.
Pensions
US PRT Market Sees $14B in Volume in Q3
Nearly half of this quarter’s pension risk transfer volume came from IBM’s $6 billion PRT with Prudential, per Legal & General Retirement America.
Pensions
Public Pension Funded Ratios Register 1st Decline Since April
The funded ratio for the 100 largest U.S. public pension plans fell by 160 basis points in October.
Pensions
Deutsche Bank UK Pension Completes $1.4B Buy-In
The pension risk transfer transaction will be the bank’s third with Legal & General.
Pensions
Rate Cuts Unlikely to Affect PRT Market in Short Term
Funds are more sensitive to long-term rates, upon which the Federal Reserve’s action will have little impact.
Pensions
IBM Secures $6B Pension Risk Transfer With Prudential
The latest deal follows the company closing its defined contribution plan in 2023 in favor of a cash-balance pension plan and an earlier $16 billion PRT.