The IBT Local 863 retirement plan received a $334 million grant from the Pension Benefit Guaranty Corporation Thursday. The pension fund is the latest multiemployer plan to receive a grant through the Special Financial Assistance Program.
The Mountainside, New Jersey-based plan, which covers 2,487 participants in the transportation industry, was expected to become insolvent in 2024. At that point, it would have had to cut benefits by 75%.
According to the pension fund’s Form 5500 from 2021, the plan had 1,934 active participants, 0 receiving benefits and 716 entitled to benefits in the future. The plan had a total of $70 million in assets at that time.
The SFA provision of the American Rescue Plan Act allows for PBGC funding for severely underfunded multiemployer pension plans. Funds that receive assistance must monitor the interest resulting from the grant money as separate from other sources of funding. The PBGC requires that at least two-thirds of the money it provides be invested in “high-quality fixed income investments.” The Final Rule on Special Financial Assistance, issued in July 2022, states that the other third can be invested in “return-seeking investments,” such as stocks and stock funds.
Newfront Retirement Services Hires Lumban as Retirement Plan Consultant
Khirstine Lumban
Newfront Retirement Services has hired retirement plan consultant Khirstine Lumban, who will join the firm later in September and bring more than a decade of industry experience, according to a company LinkedIn post.
“Khirstine’s deep focus on building strong relationships and long history of delivering best in class client results will be a perfect fit for the Newfront team,” Greg Kaplan, Newfront’s retirement services practice leader, wrote in the post.
According to LinkedIn, Lumban has been a 401(k) consultant at Sequoia Consulting Group since 2018. She previously served as an investment counselor for Fisher Investments.
Vestwell Selects New VP of National Accounts, Advisory Enterprise Sales
John Resurreccion
Vestwell Holdings Inc. has hired John Resurreccion as vice president of national accounts and advisory enterprise sales. He will report to Joshua Forstater, senior vice president and national sales manager.
Vestwell is expanding its national accounts team to support its growing list of partnerships among large advisory firms. Resurreccion will be responsible for developing new national account solutions and supporting ongoing sales coverage. With the addition of Resurreccion, Vestwell’s enterprise and national accounts team comprises nine employees across business development, partner success and enterprise relationship management.
“I’m excited to join an innovative team, reshaping the savings industry, and look forward to expanding Vestwell’s reach across the retirement adviser community,” Resurreccion wrote in an emailed response.
Prior to joining Vestwell, Resurreccion spent nearly eight years at Dimensional Fund Advisors, most recently as vice president, and he also held retirement positions at LPL Financial and Index Fund Advisors.
PGIM Names Adler President, CEO of PGIM Private Alternatives
Eric Adler
PGIM has appointed Eric Adler as president and CEO of a newly formed group, PGIM Private Alternatives, bringing together the firm’s private alternatives capabilities.
Adler is currently president and CEO of PGIM Real Estate and chairman of PGIM Private Equity. His appointment is effective October 1, at which time Cathy Marcus and Raimondo Amabile will jointly assume leadership of PGIM Real Estate as co-CEOs.
“Eric is uniquely qualified to lead PGIM Private Alternatives, having grown PGIM Real Estate into one of the largest real estate investors globally and leading a team of more than 1,200 investment professionals overseeing $210 billion in assets,” David Hunt, PGIM’s president and CEO, said in a statement.
PGIM currently manages $310.9 billion in private alternatives strategies across real estate, agriculture, private credit and private equity. These strategies are managed by PGIM Real Estate (real estate and agriculture), PGIM Private Capital (private credit, infrastructure debt) and Montana Capital Partners (private equity secondaries).
Loomis Names Madsen Director of Institutional Strategy, Development Loomis, Sayles & Co. announced that Rachel Madsen has joined the firm as director of institutional strategy and development.
Rachel Madsen
Madsen will focus on business development efforts for existing and prospective clients in the Midwest, with a focus on both the corporate channel and the endowments and foundations channel. Based in Chicago, Madsen reports to Maurice Leger, head of global distribution.
“Rachel’s deep industry expertise, skillfulness in building strong relationships and commitment to serving clients with excellence make her a wonderful addition to our team,” Leger said in a statement.
Madsen joins Loomis from Franklin Templeton, where she was a senior institutional relationship manager. Previously she was client relationship director and interim head of client services for Aviva Investors Americas. Madsen has also served as a solutions strategist for Legal & General Investment Management.
José Jara Appointed Chair of ABA Employee Plans, Executive Compensation Group
Jose Jara
Fox Rothschild LLPnamed José Jara chair of the employee plans and executive compensation group of the American Bar Association’s section of real property, trust and estate law for the 2023 to 2024 term.
The employee plans and executive compensation group, of which Jara was formerly vice chair, is comprised of more than 200 attorneys with an interest in employee benefits, ERISA and executive compensation issues.
Counsel in the firm’s labor and employment department, Jara focuses his practice on ERISA and employment litigation and counseling. Jara’s practice also includes representing clients under investigation by the U.S. Department of Labor’s Employee Benefits Security Administration regarding civil and/or criminal violations of ERISA.
He was previously a claims director for a major international insurance company and a senior pension law specialist and investigator with EBSA.
In the newly created role, Bahuguna will oversee the firm’s asset allocation and multi-manager teams, according to the firm. Bahuguna will report to Northern Trust Asset Management Global CIO Angelo Manioudakis.
“Increasingly, our clients are looking for holistic asset management solutions to their most complex investment challenges,” Manioudakis said in a statement. “With the addition of such an accomplished investment professional to our team, I am confident we can continue meeting the evolving needs of investors.”
Bahuguna’s appointment comes in conjunction with the appointments earlier this year of Michael Hunstad to deputy CIO and CIO of global equities and Sheri Hawkins to head of investment platform services to bolster NTAM’s investment capabilities, according to the firm.
Bahuguna joined NTAM following 17 years with Columbia Threadneedle Investments, finishing her tenure as head of multi-asset strategy and senior portfolio manager.
NTAM asset holdings comprise $1.1 trillion in assets under management as of June 30, according to the release.
Voya IM Promotes Regional Director
Voya Investment Management, a division of Voya Financial Inc., confirmed the promotion of Chris Burnett to vice president and senior regional director for the adviser channel, covering wirehoueses and large independent broker/dealers, the company confirmed.
Burnett reports to Paul Bernardi, managing director and head of broker/dealer distribution for Voya Investment Management, a spokesperson wrote in an email.
“Chris was an internal wholesaler who was promoted to the field,” the spokesperson wrote.
Burnett is responsible for sales coverage in Georgia, Tennessee, Alabama, Mississippi and Arkansas. He joined Voya in August 2021 as a regional coordinator.
