Media Mentions

Forbes | CWA Union Fights Back Against So-Called Pension De-Risking

April 13, 2024

In history repeating itself, companies are terminating their https://www.forbes.com/advisor/retirement/best-retirement-plans/" aria-label="pension plans">pension plans and replacing them with annuities—long-term contracts providing lifetime payments. Recent stock market gains and higher interest rates boost pension assets to make the transfer profitable now. The https://www.plansponsor.com/corporate-pension-funding-hits-best-levels-in-decades/" aria-label="funded status">funded status of many corporate defined benefit plans in the U.S. show surpluses, with a number of pension trackers finding that many corporate plans are more than 100% funded. IBMhttps://www.forbes.com/companies/ibm" aria-label="IBM">IBM decided to use its plan surplus to reinstate its defined benefit plan; many more are derisking.

On March 6 Verizon announced it had completed https://belltelretirees.org/wp-content/uploads/2024/03/BellTel-websites-PR-on-VZ-derisking.pdf" aria-label="a $5.9 billion transfer of 56,000 pensions to group insurance annuities with Prudential Insurance company and RGA">a $5.9 billion transfer of 56,000 pensions to group insurance annuities with Prudential Insurance company and RGA. Last year ATT de-risked their pension obligations in an $8 billion transaction involving 96,000 retirees and beneficiaries.

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