Posted by Many Americans rely on traditional Pension pensions and receive monthly checks from companies or government organizations, but this situation is changing.
People will find that the cheque funds they receive every month are no longer from the government agencies or enterprise groups they have worked for, but from life insurance companies.
According to TLT (American Life Insurance Guide) The latest news report is that Lockheed Martin announced in August 2021 that it had purchased $8 billion from Athene Insurance Group.Annuity insurance, To replace the traditional Pension pension.
(The F-22 Raptor fighter product jointly developed and produced by Lockheed Martin)
Military giants buy huge retirement annuity insurance
Lockheed Martin, the full name of Lockheed Martin Space Systems, is the world's largest weapons manufacturer and defense contractor. It ranks 2020th on the 2000 Forbes Global 145 list and employs more than 11 people.
In order to solve the problems of employee retirement pensions and company asset liability management, the pension solution chosen by Lockheed Martin is:Annuity insurance.
The underwriting Athene Insurance Company was established in 2009 by the private equity giant Apollo (Apollo Investment Group). It is a relatively "young" life insurance company with rapid development.
TLT (American Life Insurance Guide) In2020Japanese 2021Quarterly Annuity Sales Ranking DataPoint out that Athene Insurance Company's fixed index annuity market ranks in the top three.
By underwriting Lockheed Martin, Athene Insurance Company will provide employees of Lockheed Martin with retirement pensions for life.
(Screenshot of Athene Financial Insurance Group's official website)
How has my pension changed?
For employees receiving Lockheed Martin retirement pensions, the pension benefits are not affected, and most of them look exactly the same as in the past:Every month, I continue to receive pensions, and the amount remains the same.
among themThe biggest change is,In the past, the pension insurance was reinsurance by the pension guarantee company (PBGC), which is a federal agency. If Lockheed Martin fails or is unable to pay the retirement pension, the pension guarantee company will pay A certain amount of pension is carried out.
Now, your pension is in charge and reinsurance by commercial insurance companies, state insurance bureaus, and state insurance guarantee associations and funds.
(The insurance bond associations of each state will reinsurance and settle claims on the insurance account of the insured. The above picture shows the upper limit of claims in each state ©️insurancejournal)
Article summary
In the last century, most American companies and governments provided their employees with their own pension plans, such as Lockheed Martin, Hewlett-Packard Group, etc.
After the 80s, many private companies began to use 401k retirement pension plans to replace the traditional pension pension, but this transferred the responsibility and risk of managing this money to the employees who went to work.If employees cannot have the necessary asset management capabilities, they face the risk of shrinking pensions.
Companies with a relatively long history, like Lockheed Martin mentioned in this article, still manage large-scale Pension plans at the company level.Through the transfer of life insurance group to take care of Pension funds, in exchange for the company, life insurance group, and retired employees, a win-win situation.
Compared with military weapon manufacturers, telephone companies, and small and medium-sized enterprises, life insurance companies are more suitable for managing employees’ pension accounts and the responsibility of paying pensions.Life insurance companies have made a living on this for hundreds of years. (End of full text)
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