Athene closes a $2.8bn pension deal with JCPenney

Athene Holdings has closed a $2.8 billion pension risk transfer deal relating to department store JCPenney’s pension plan termination.

Under the terms of the transaction JCPenney transferred $2.8 billion in pension obligations to Athene.

Athene’s wholly-owned subsidiaries, Athene Annuity and Life Company, and Athene Annuity & Life Assurance Company of New York, will provide annuity benefits for approximately 30,000 participants of JCPenney’s pension plan.

Sean Brennan, EVP of Pension Risk Transfer and Flow Reinsurance at Athene, said: “We are pleased to serve as a trusted partner to JCPenney in providing retirement security to its retirees and their beneficiaries. By choosing Athene, JCPenney is entrusting its pension promises to a company with deep experience and expertise in the long-term management of retirement benefits.

“Rather than face benefit reductions amid the Company’s restructuring activity, the retirees covered by this transaction can be confident they will receive the same pension benefit, on the same schedule, as what they currently receive, or expected to receive in the future.”

Steve Whaley, Chair of the Benefit Plan Investment Committee of JC Penney Corporation said: “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.”

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