The Pensions & Investments (P&I) Research Center in October 2017 announced that it has just added data about pension risk transfers (PRTs) to a new database that contains details on more than 200 transactions over the past five years. The vast majority of the transactions in the database occurred in the U.S. and in the U.K..
These transactions represent more than $200 billion in liabilities that have been moved off corporate balance sheets and 1.5 million individuals that have been impacted.
Macroeconomic factors and a profound shift in the goals of corporations since the global financial crisis have accelerated the pace of corporate plan sponsors who have shifted defined benefit pension risk off their balance sheets through the use of PRTs.
PRTs come in different shapes and sizes; in the U.K., many plan sponsors have chosen to use longevity swaps to eliminate the risk of participants living longer than actuaries originally forecasted. In the U.S., many plan sponsors have made lump-sum offers to participants. P&I has tracked almost 125,000 participants who have accepted the lump-sum offers.
The P&I Research Center is an interactive platform of institutional investor profiles and industry data on pension funds, money managers, and investment consultants including 10 years of historical data that can be sorted and viewed by type of plan, asset class, assets under management (AUM), and various demographic criteria. The subscription-based database can be accessed here [1].
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