J.C. Penney purchased a group annuity contract to transfer about $2.8 billion in pension liabilities to complete the plan termination.
U.S. corporate pension plans remain eager to transfer risk after a pause in the market resulting from the COVID-19 pandemic.
The average cost of purchasing group annuity contracts for U.S. corporate defined benefit plans was 97.7% as of June 30, Mercer data show.
Pension risk transfer activity may drop in 2020 due to falling bond yields and poor market returns.
Iron Ore Company of Canada purchased a $429 million group annuity buy-in contract from Sun Life Financial.
U.S. corporate pension plans are showing an increasing interest in plan terminations as the pension risk transfer market remains steady.
Rollins Inc. purchased a group annuity contract from AIG to transfer the remaining liabilities of its U.S. pension plan.
Lockheed Martin's pension buy-in could open the doors for more U.S. corporate pension plans to make innovative derisking decisions.