×
73 813
Fashion Jobs
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Phoenix
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Topeka
ABERCROMBIE KIDS STORES
Abercrombie Kids - Manager in Training, Natick
Permanent · Natick
MACY'S
Asset Protection Detective, Perimeter Mall - Full Time
Permanent · Atlanta
MACY'S
Asset Protection Detective, Oak Brook Center - Full Time
Permanent · Oak Brook
MACY'S
Asset Protection Security Guard, Herald Square - Full Time
Permanent · New York
MACY'S
Asset Protection Detective, Mall at Greece Ridge Center - Full Time
Permanent · Rochester
MACY'S
Asset Protection Detective, Bowie Towne Center - Full Time
Permanent · Bowie
MACY'S
Asset Protection Detective, Cool Springs - Part Time
Permanent · Franklin
MACY'S
Asset Protection Detective, Greenbrier - Full Time
Permanent · Chesapeake
MACY'S
Asset Protection Detective, Northridge Fashion Center - Full Time
Permanent · Los Angeles
MACY'S
Asset Protection Detective, Superstition Springs Center - Part Time
Permanent · Mesa
MACY'S
Asset Protection Detective, Westminster - Full Time
Permanent · Westminster
MACY'S
Asset Protection Security Guard, Green Acres - Part Time
Permanent · Valley Stream
MACY'S
Asset Protection Detective, Sherman Oaks Fashion Square - Part Time
Permanent · Los Angeles
MACY'S
Asset Protection Detective, Woodbridge Center - Part Time
Permanent · Woodbridge Township
MACY'S
Asset Protection Detective, Center City - Part Time
Permanent · Philadelphia
MACY'S
Asset Protection Detective, State Street - Full Time
Permanent · Chicago
MACY'S
Asset Protection Detective, Herald Square - Full Time
Permanent · New York
MACY'S
Asset Protection Detective, Rockaway Town Square - Part Time
Permanent · Rockaway
MACY'S
Asset Protection Detective, Coral Square - Full Time
Permanent · Coral Springs
MACY'S
Asset Protection Detective, Center City - Full Time
Permanent · Philadelphia
By
Reuters API
Published
Apr 1, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Athene to take over $2.8 billion in J.C. Penney pension obligations

By
Reuters API
Published
Apr 1, 2021

J.C. Penney Co Inc said on Thursday it has agreed to transfer its pension obligations to annuities provider Athene Holding Ltd, ensuring that the U.S. department store chain's retired employees will continue to get their benefits.




J.C. Penney, which said in December that it would seek to exit bankruptcy protection sometime this year, will not receive any money as part of the deal, but will shed the liabilities that came with the pensions.

"We are thrilled that this one-of-a-kind transaction will enable the Pension Plan to pay the benefits that JCPenney intended the participants to receive,” J.C. Penny said in an emailed statement.

Apollo Global Management Inc, the private equity firm that controls Athene and earlier this month inked an $11 billion deal to take it private, is seeking to profit by earning a higher return on investing the pension assets than its payouts to the retirees will be.

It is Athene's biggest ever pension transfer deal.

Under the terms of the deal, J.C. Penney Co Inc has agreed to transfer $2.8 billion in pension obligations for roughly 30,000 participants in J.C. Penney's pension plan, according to people familiar with the matter.

In a pension risk transfer, an insurer takes on a pension plan's assets and liabilities, and writes a group annuity contract obligating it to pay participants. The insurer is betting it will make more on investments than it pays out.

The Pension Benefit Guaranty Corporation (PBGC) in November had taken responsibility for J.C. Penney's pension plan, but also allowed the retailer to explore alternatives that would avoid cuts to retiree benefits.

J.C. Penney filed for bankruptcy in May 2020 after the COVID-19 pandemic forced it to temporarily close its then nearly 850 stores.

The 118-year-old department store chain said in December it would exit Chapter 11 after agreeing to a deal with two of its biggest landlords, Simon Property Group and Brookfield Asset Management Inc.
 

© Thomson Reuters 2023 All rights reserved.