Life Annuity Specialist reported on the September 8th hearing of the Senate Banking Committee: “Senate Banking Committee members grilled regulators Thursday on whether they are ‘stepping up’ to address perceived risks that private equity involvement in the life insurance industry poses to retirees and workers… “[Senator Warren] said private equity-backed insurers can ‘jack up their […]
Concerns about pension benefits being transferred to private equity owned insurers were front and center at today’s Senate Banking Committee hearing. Senator Brown opened the hearing by remarking on Lockheed Martin’s transfer of $4.3 billion of pension obligations to Athene, owned by Apollo Global Management. Senator Brown said, “Overnight, Lockheed Martin employees and retirees were […]
Today, the US Senate Committee on Banking, Housing, and Urban Affairs announced a hearing on the insurance industry will be held on September 8th. Committee Chairman Senator Sherrod Brown is expected to address the issues related to private equity and retirement security in the hearing, among other issues. On August 5th, Brown wrote in a […]
On March 16, 2022, Senate Banking Committee Chairman Sherrod Brown wrote to the National Association of Insurance Commissioners (NAIC) and the Federal Insurance Office (FIO) of the U.S. Treasury Department highlighting concerns about private equity’s growing role in the insurance industry and asking the two regulatory bodies to further study the issue and report to Congress no later […]
On December 7, 2021, the Financial Stability Task Force of the National Association of Insurance Commissioners (NAIC) discussed private equity ownership of life insurers. The task force will assign a subsidiary working group to examine issues related to private equity ownership of insurers (though not necessarily exclusive to private equity-owned insurers). It published a draft […]
Illinois State Treasurer Michael Frerichs, Wisconsin State Treasurer Sarah Godlewski, and Colorado State Treasurer David Young sent a letter to Secretary of Labor Marty Walsh calling for new guidance from the Department of Labor to ensure the safekeeping of retirement assets when plans transfer liabilities to insurers. Citing the growing role of private equity-backed insurers […]
Retirees for Justice, a retiree advocacy group committed to preserving earned benefits for retirees and their families, has joined the call for the DOL to update its guidance for pension plan fiduciaries regarding the selection of an annuity provider when transferring liabilities for benefits. “Retiree earned benefits are not handouts. Many of today’s retirees worked […]
EBSA nominee Lisa Gomez commits to work on the issue in the interests of workers and their families On October 7, 2021, a confirmation hearing was held by the U.S. Senate Committee on Health, Education, Labor and Pensions on the nomination of Lisa Gomez to head the Employee Benefits Security Administration (EBSA), the agency of […]