Sept. 8 Listening to Anticipated to Deal with Non-public Fairness Pension Takeover, Retirement Safety
Press Touch: Kara Deniz Telephone: (202) 497-6610 E mail: [email protected]
(WASHINGTON) – The World Brotherhood of Teamsters and hospitality union UNITE HERE applaud the announcement {that a} U.S. Senate committee plans to handle the dangerous job of personal fairness corporations within the insurance coverage and retirement asset industries.
A listening to on such problems, together with the competitive funding methods of personal equity-controlled insurers, is scheduled for Sept. 8 sooner than the Senate Committee on Banking, Housing, and City Affairs. The subjects are vital to employees and retirees as personal fairness corporations, in particular Apollo World Control, are taking keep watch over of extra retirement belongings and tasks via pension buyout offers.
Athene, a retirement safety corporate owned by means of Apollo, entered the pension threat switch marketplace in 2017 and grew so impulsively it fed on the biggest marketplace proportion in 2020 and 2021.
Committee Chairman Senator Sherrod Brown mentioned he intends to handle “the expansion of offshore reinsurance markets and larger risk-taking conduct around the lifestyles insurance coverage trade” right through the listening to, amongst different problems. Brown has requested the Nationwide Affiliation of Insurance coverage Commissioners and the Federal Insurance coverage Place of job to check what dangers those extra competitive ways of personal fairness insurance coverage suppliers provide to policyholders.
“Lawmakers must get off the sidelines and do something positive about personal fairness’s bad conduct round insurance coverage and retirement belongings,” mentioned Teamsters Normal President Sean M. O’Brien. “The Teamsters applaud Senator Brown for serving to to ring the alarm bells on personal fairness’s increasing presence in those industries. Our executive must get eager about safeguarding employees’ retirement advantages and get started scrutinizing the funding movements of businesses like Apollo.”
“Staff’ earned pension belongings must keep in federally regulated and insured pension plans,” mentioned UNITE HERE President D. Taylor. “They must no longer be bought off to non-public fairness, reinsured offshore in Bermuda, and positioned into advanced and illiquid investments. We stay up for those problems being addressed within the upcoming listening to.”
