Key Takeaways
- • Goldman Sachs Asset Management was hired as outsourced CIO (OCIO) for the retirement plans of Verizon Communications Inc. and Lockheed Martin Corp., securing a combined $70 billion in new mandates, according to Goldman's announcement on Thursday.
- • The mandates split into $30 billion in defined benefit assets and $40 billion in defined contribution assets, lifting Goldman's total OCIO assets to a combined $480 billion.
- • Both companies have offloaded pension liabilities through pension risk transfers, including Verizon's $5.9 billion transfer in 2024 covering 56,000 retirees and Lockheed Martin's cumulative transfers of roughly $10 billion since 2021.
- • The deals reflect a broader trend of plan sponsors outsourcing pension investment management after years of steady funding surpluses, and add to Goldman's large OCIO book, which includes UPS ($43.4 billion), Shell's European pension funds ($40 billion) and Eli Lilly ($25 billion).
- • Verizon Investment Management CIO Laurence Fulton announced his retirement after 39 years with the company; Lockheed Martin says the change does not alter plan designs or benefits.
Summary
Goldman Sachs Asset Management L.P. has been hired as outsourced chief investment officer for the retirement plans of Verizon Communications Inc. and Lockheed Martin Corp., Goldman Sachs announced Thursday. The mandates total a combined $70 billion, with $30 billion in defined benefit assets and $40 billion in defined contribution assets. Following the wins, Goldman manages a combined $480 billion in OCIO assets.
The move follows a wave of plan sponsors opting to outsource pension investment management after years of steady funding surpluses. Goldman has secured several of the largest OCIO mandates in recent years, including a $43.4 billion mandate from UPS, $40 billion from Shell PLC's European pension funds and $25 billion from Eli Lilly & Co.
Both companies have been active in pension risk transfers. In 2024, Verizon offloaded $5.9 billion in plan liabilities covering 56,000 retirees to RGA Reinsurance Co. and the Prudential Insurance Co. of America. Lockheed Martin transferred approximately $4.9 billion in obligations covering 18,000 retirees to Athene Annuity & Life Assurance Co. in 2021, another $4.3 billion covering 13,600 retirees to a different Athene insurer in 2022, and a further $943 million in plan liabilities to an undisclosed number of insurers across 2025 and 2026.
Verizon Investment Management CIO Laurence Fulton announced his retirement in a LinkedIn post on Tuesday, after 39 years at the company. A Lockheed Martin spokesperson said the outsourcing was part of an ongoing review of its business objectives, following a rigorous competition and review process. The company said the change does not alter plan designs or benefits. According to a source, the Lockheed Martin Investment Management Company will remain fiduciary to the company's plans until the assets transition to Goldman Sachs.
Marc Nachmann, Goldman Sachs' global head of asset and wealth management, said in a statement that large plan sponsors are consolidating responsibilities with one partner, and that Goldman believes the mandates affirm its ability to deliver customized public and private market solutions for the world's largest retirement plans.
The move follows a wave of plan sponsors opting to outsource pension investment management after years of steady funding surpluses. Goldman has secured several of the largest OCIO mandates in recent years, including a $43.4 billion mandate from UPS, $40 billion from Shell PLC's European pension funds and $25 billion from Eli Lilly & Co.
Both companies have been active in pension risk transfers. In 2024, Verizon offloaded $5.9 billion in plan liabilities covering 56,000 retirees to RGA Reinsurance Co. and the Prudential Insurance Co. of America. Lockheed Martin transferred approximately $4.9 billion in obligations covering 18,000 retirees to Athene Annuity & Life Assurance Co. in 2021, another $4.3 billion covering 13,600 retirees to a different Athene insurer in 2022, and a further $943 million in plan liabilities to an undisclosed number of insurers across 2025 and 2026.
Verizon Investment Management CIO Laurence Fulton announced his retirement in a LinkedIn post on Tuesday, after 39 years at the company. A Lockheed Martin spokesperson said the outsourcing was part of an ongoing review of its business objectives, following a rigorous competition and review process. The company said the change does not alter plan designs or benefits. According to a source, the Lockheed Martin Investment Management Company will remain fiduciary to the company's plans until the assets transition to Goldman Sachs.
Marc Nachmann, Goldman Sachs' global head of asset and wealth management, said in a statement that large plan sponsors are consolidating responsibilities with one partner, and that Goldman believes the mandates affirm its ability to deliver customized public and private market solutions for the world's largest retirement plans.
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