Alcoa Retirees Are Latest to Sue Over Athene Pension Transfers

Four Alcoa USA Corp. retirees filed a proposed class action saying the company mishandled the pensions of more than 28,000 people by moving them to annuities from an overly risky insurance company owned by private equity.

The lawsuit challenges Alcoa’s decision to offload more than $2 billion in pension obligations to subsidiaries of Athene Holding Ltd., which the retirees describe as “a private-equity controlled insurance company with a highly risky offshore structure.” This move, which likely saved Alcoa a “substantial amount of money,” jeopardized workers’ retirement security and subjected them to additional risks for which they weren’t properly compensated, ...