June 2024
11Jun

AT&T Seeks Dismissal From Two Lawsuits Targeting PRT Deal with Athene

AT&T Inc. filed a motion to dismiss two lawsuits against the company Wednesday that accused both AT&T and its independent fiduciary, State Street Global Advisors Trust Co., of selecting a “risky” third-party insurance company—Athene Annuity and Life Company—to conduct its $8.05 billion pension risk transfer in May 2023. The retirees who filed the two lawsuits against AT&T claimed that selecting Athene was not a safe annuity choice for ERISA fiduciaries. But the company’s filing argued that AT&T did not make...

June 11, 2024
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10Jun

US. Ways to leverage a pension plan surplus

A robust equity market coupled with the strong fixed-income returns that followed the sharp rise in interest rates have restored corporate pension plans to full-funded status, with many enjoying a surplus. This welcome development has sparked conversations by plan sponsors exploring paths for their excess pension assets, from bolstering retirement benefits to addressing corporate financial needs or supporting other business initiatives. “The pension environment has changed significantly since pensions were last overfunded, and these changes present opportunities to plan sponsors...

June 10, 2024
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07Jun

US. New Issue Brief: Time to Fix Underfunding of Public-Sector Pensions

Public-sector pensions are facing a significant underfunding crisis that has only worsened over the past 25 years despite periods of high-asset returns. This growing burden threatens the financial stability of municipal and state finances, potentially leading to higher taxes or severe cuts to retirees’ benefits and essential services if not addressed promptly. In a new Manhattan Institute issue brief, senior fellow Allison Schrager argues the current high-interest rate environment presents a unique opportunity to set public-sector pensions on a more sustainable path. Improper pension...

June 7, 2024
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06Jun

US. Manager concentration dominates corporate retirement plans. How can smaller managers compete?

David O’Meara, senior director and head of defined contribution investment strategy at Willis Towers Watson, said that the scale of the largest managers has given them significant advantages in multiple areas. “There is a downward pressure on fees,” O’Meara said. “That includes the long-term trend of an increasing use of individual passive investment options and target-date funds, which the largest managers have always dominated in the market, as well as active strategies that have more operational scale and can reduce...

June 6, 2024
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06Jun

Beware of DB pension risk blind spots – What gets measured gets managed

It is often said that “What gets measured gets managed” and it is simple to find many examples, inside and outside of the pensions arena, where this adage applies. However, in some contexts, especially when measuring uncertain financial liabilities and risks, it is not merely “what” is measured that matters but also “how” it is measured that is important. Applying different principles to measurement can significantly influence the actions taken with the potential for material financial ramifications. One common measurement of...

June 6, 2024
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05Jun

Australia’s Active Super found guilty of making misleading environmental claims

Australia's Federal Court has found superannuation fund Active Super guilty of making misleading claims concerning its environmental, social and governance (ESG) credentials, the country's securities regulator said on Wednesday. The Australian Securities and Investments Commission (ASIC) had sued Active Super last year, disputing the fund's claims that it no longer held investments in gambling, coal mining and oil tar sands, and that it had exited Russian investments. The court found that between February 2021 and June 2023, Active Super invested in...

June 5, 2024
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04Jun

Ghana. Organised Labour demands complete restructuring of SSNIT

Organised Labour is demanding an amicable resolution to the usage of workers’ funds by the Social Security and National Insurance Trust (SSNIT). According to Organised Labour, the recent actions and inaction of SSNIT leave much to be deserved. The Executive Secretary of the Civil and Local Government Staff Association of Ghana (CLOGSAG), Dr. Isaac Bampoe-Addo, said Organized Labour will be in a better position to manage its pensions than SSNIT. “We are not convinced, and we tell them [SSNIT] in plain language...

June 4, 2024
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May 2024
30May

Pension managers back climate group after high-profile US exits

 Asset owners overseeing $4.6 trillion have signed a statement throwing their support behind the Climate Action 100+ investor group after several high-profile Wall Street investors left the global initiative. Signatories included the California State Teachers' Retirement System (CalSTRS) and California Public Employees Retirement System pension managers, as well as more than 40 others from countries including Britain, Canada and Sweden. In the statement on CalSTRS' website, the groups, many of which employ asset managers to invest in markets on their behalf,...

May 30, 2024
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30May

Entergy to Transfer $1.2B in Pension Liabilities

In a busy year for pension risk transfer transactions, energy provider Entergy will transfer $1.157 billion in pension liabilities to Metropolitan Life Insurance Company, Entergy announced in an 8-K SEC filing on May 24. Entergy, which provides electricity to roughly three million customers in Arkansas, Louisiana, Mississippi and Texas, entered the agreement with MetLife on May 23, which will cover 3,447 retirees and other beneficiates who received benefit payments on or before March 1, 2024. Entergy’s retirees and beneficiaries will continue to receive...

May 30, 2024
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29May

US. Pension risk transfer premiums rise in April — Milliman

U.S. pension risk transfer premiums among the most competitive bidding processes rose in April, a study by actuarial and consulting firm Milliman showed. The estimated average premium among the most competitive rates was 100.9% as of April 30, up from 100.3% a month earlier, according to a report about the Milliman Pension Buyout index. Milliman said the jump in competitive rates came from average accounting discount rates that increased by 45 basis points, while annuity purchase rates increased by 36 basis...

May 29, 2024
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