JCPenney Transfers $2.8 Billion in Pension Obligations to Athene

Posted on 04/03/2021

Pension risk transfer is an attractive solution for plan sponsors interested in a plan termination, including those going through a company restructuring.

Athene Holding Ltd. is the annuities provider being bought by Apollo Global Management. Athene sealed a deal to acquire US$ $2.8 billion in pension obligations of bankrupt retailer JCPenney. Athene’s wholly-owned subsidiaries, Athene Annuity and Life Company, and Athene Annuity & Life Assurance Company of New York, have agreed to provide annuity benefits for approximately 30,000 participants of JCPenney’s pension plan who are currently receiving benefits, or will receive benefits in the future.

“We wanted to find a better solution for our pension plan participants than the distress termination. With the assistance of multiple pension termination experts, we reached an agreement with Athene Holding Ltd. to purchase annuities for all pension plan participants in conjunction with the plan termination,” said Steve Whaley, Chair of the Benefit Plan Investment Committee of J.C. Penney Corporation, Inc. in a press release.

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