The Troubling Use of Offshore Reinsurers

When a pension risk transfer deal (PRT) takes place, liabilities for retirees’ pensions are transferred to an insurance company. It follows, then, that an insurer’s investment decisions stand to impact retirees directly. Insurers are increasingly transferring payment liabilities to offshore reinsurance companies in jurisdictions like Bermuda and the Cayman Islands. This is very troubling for […]

Excess Mortality During Covid 19 Not Fully Explained by Official Death Records

During the Covid-19 pandemic, a measure known as “excess mortality” has been used to predict how many deaths were caused by the disease. The value of the measure is that, at least ostensibly, it factors out deaths from non-Covid causes, showing only those deaths caused by Covid-19. Historical demographic data is used to calculate expected […]

Symetra Litigation – from Life Annuity Specialist

In an article entitled ‘Predatory Behavior Case Against Symetra Moves Closer to Trial’ (August 19, 2022 ed.) Life Annuity Specialist reported on the recent decision by Federal District Court Judge Marsha Pechman to certify a class in the case filed by Edward Stone Law PC, together with co-counsel from Keller Rohrback and Marcus & Auerbach. […]

Favorable Decision for Executive Life Victim Trevor Langkamp

Trevor Langkamp was the recipient of one of the dreaded notices from the New York Liquidation Bureau in December, 2011 telling him that his annuity benefits from Executive Life Insurance Company of New York would be cut. The liquidation of Executive Life Insurance Company of New York (ELNY) was finalized in April, 2012 and despite […]

Voya Sells to Resolution Life

On December 18, 2019, Voya Financial, Inc. and Resolution Life Group Holdings Ltd. announced the terms of an agreement where Voya sold substantially all of its in-force life business, including its pension risk transfer liabilities for $1.250 Billion, which included cash of $902 Million, and retained surplus notes of $123 Million. Resolution Life will assume […]

Pension Risk Transfer: Annuity Buy-In or Buy-Out

What is the difference between a pension risk transfer via an annuity “buy-in” or “buy-out?” With an annuity “buy-in” a plan sponsor purchases one or more group annuity contracts to cover pension obligations with the plan sponsor remaining responsible for making payment to the plan participants. With an annuity “buy-out” the defined benefit plan sponsor […]

Baxter International De-Risks Pensions

Chicago based Baxter International has purchased a group annuity contract from Prudential Insurance.  With this move, Baxter transferred its pension liabilities of approximately $2.4Billion, covering 17,200 former employees to Prudential. This pension de-risking transaction only affects former employees who have reached “pay status.” The transaction was expected to close on October 11, 2019.

MetLife Settles with Massachusetts Over Unpaid Pensions

In late 2017, MetLife announced that it had lost track of some retirees.  MetLife had assumed the responsibility of paying these retirees in a pension risk transfers done years ago, and disclosed that it followed a policy of trying to reach beneficiaries just twice. Once when they approached age 65, and again 5 1/2 years […]

Lawsuit Filed in the Wake of MetLife’s Failure to Keep Track of Retirees

Earlier this year we reported on MetLife’s failure to pay retirees to whom it owed benefits resulting from pension de-risking transfers.  A lawsuit has now been filed against MetLife by Edward Roycroft, a former Martindale-Hubbell employee who retired in 1999.  Roycroft was supposed to receive his benefits in 1999, but MetLife did not pay him […]

New Proposed Pension De-Risking Bill in Connecticut

Connecticut State Senator Carlo Leone (D – 27) has introduced Proposed Bill No. 493 “AN ACT CONCERNING THE PURCHASE OF AN ANNUITY TO FUND PENSION AND RETIREMENT BENEFITS”. This proposed bill requires an insurance company to provide certain annual disclosures to employees and retirees impacted by pension de-risking transfers involving the purchase of a group annuity […]