PBGC Approves $868.6M SFA Grant to Unite Here Retirement Fund

The White Plains, New York-based plan covers 91,744 participants in the hospitality industry.



The Pension Benefit Guaranty Corporation
announced Wednesday its approval of the Legacy Plan of the Unite Here Retirement Fund’s application for special financial assistance. The PBGC will provide $868.6 million to the White Plains, New York-based plan.

The plan, which covers 91,744 participants in the hospitality industry, was expected to become insolvent in 2030. According to the plan’s Form 5500 for plan year 2023, the plan had a funded status of 29.8%.

Unite Here is a labor union which counts more than 300,000 members in the U.S. and Canada and represents workers in the hotel, casino, airports, food service, textile manufacturing and distribution, and transportation industries.

“With this Special Financial Assistance to the Legacy Plan of the UNITE HERE Retirement Fund, 91,744 UNITE HERE workers and retirees will have their pension benefits protected from expected future cuts,” Acting Secretary of Labor Julie Su said in a statement. “These workers are the backbone of our economy and deserve to retire with dignity.”

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The Special Financial Assistance Program grants funding to underfunded and distressed pension funds that are nearing insolvency. As of January 15, the PBGC has provided $70.9 billion in special financial assistance to 109 pension funds covering more than 1.3 million retirees. The program was enacted in 2021 as part of the American Rescue Plan Act.

Plans that receive special financial assistance must allocate two-thirds of their assets to high quality fixed-income investments. Another one-third of assets can be invested in return-seeking assets like stocks and stock funds.

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CDPQ’s Ivanhoé Cambridge Sells 49% of News Corp. Building

The sale is the first major deal since the Québécois pension fund consolidated its real estate units.




Ivanhoé Cambridge, the real estate unit of Canadian pension fund Caisse de dépôt et placement du Québec, has sold a 49% stake in the New York City building at 1211 Avenue of the Americas, also known as the News Corp. Building, to commercial real estate firm RXR. Financial terms were not disclosed.

The sale of its stake in the News Corp. building is the first major real estate deal announced by Ivanhoé Cambridge since CDPQ combined the firm with its other real estate subsidiary, Otéra Capital, less than a year ago.

As part of the acquisition, RXR and Ivanhoé Cambridge announced they will invest more than $300 million in the 2-million-square-foot building through a “modernization program” that will include a renovated multi-tenant lobby and plaza. According to the companies, the improvements will also include a new amenity area, conference rooms and a wellness center.

“This initiative is part of our strategy to redefine the workplace service offering to meet the evolving needs of top-tier tenants in the country’s most sought-after markets,” said Rana Ghorayeb, executive vice president and head of real estate for CDPQ and Ivanhoé Cambridge, in a statement.

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The building is 55% occupied by Fox News Channel and News Corp., both of which have signed leases that extend their stay there until 2042. However, law firm Ropes & Gray LLP, which has more than 500 employees in its New York office, is leaving the building in 2028 to move three blocks to another office space owned by RXR. The real estate firm said the departure of Ropes & Gray will leave more than 600,000 square feet of office space.

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