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Abbott - AbbVie Multiple Employer Pension Plan
The Abbott-AbbVie Multiple Employer Pension Plan is the legacy defined benefit vehicle that survived Abbott Laboratories' 2013 spinoff of its research-based...
Abbott - AbbVie Multiple Employer Pension Plan
The Abbott-AbbVie Multiple Employer Pension Plan is the legacy defined benefit vehicle that survived Abbott Laboratories' 2013 spinoff of its research-based pharmaceuticals business into AbbVie Inc. Rather than splitting the existing pension trust, the two companies jointly sponsor this plan for employees and retirees who earned benefits before the separation. The plan is frozen, so no new participants accrue benefits, and its primary function is actuarial — ensuring monthly checks clear for a gradually aging and shrinking pool of former workers. The plan's investment strategy is conservative and liability-hedged, typical of frozen corporate pensions. Public filings reveal positions in broad, benchmark-free allocation funds, such as the GMO Benchmark-Free Allocation Fund, suggesting a preference for absolute return and diversified risk rather than index replication. The plan has also held unusual assets — a DIP term loan to Hi-Crush Inc., an industrial sand miner that filed for Chapter 11 in 2020, indicating occasional exposure to distressed credit and idiosyncratic special situations within a predominantly conservative book. The plan's scale is not publicly disclosed. It operates with minimal dedicated staff — Rachel Lopez is the named administrator, and investment management likely involves external consultants or internal treasury functions at the sponsoring companies. There are no known adjacent philanthropic vehicles or co-investment clubs tied to the plan, as it functions purely as a corporate-finance obligation rather than a family-office-style capital allocator. Its structural differentiator is its very existence as a shared vehicle between two independent S&P 500 companies. Most corporate spinoffs partition pension assets fully; Abbott and AbbVie chose joint sponsorship, preserving a single trust with unified governance. As the plan's obligations wind down, the investment challenge flips from growth to careful duration-matching, making its terminal strategy distinct from open, accruing funds — a slow liquidation masquerading as a pension.
General information
Firm type
Pension Fund
Year founded
2013
Location
Region
North America
Country
United States
City
Abbott Park
Corporate office
Abbott Park, IL, United States
Principals
Rachel Lopez
Administrator
Frequently asked questions
Why does a single pension plan serve both Abbott and AbbVie?
When Abbott Laboratories spun off its pharmaceutical division into AbbVie in 2013, the two companies elected to jointly sponsor the existing pension plan rather than splitting it into separate trusts. The plan covers employees and retirees from both companies who earned benefits prior to the separation. Each company has a legal obligation to fund the benefits attributed to its respective participants.
Is the plan still open to new participants or accruals?
No. The plan is frozen, meaning no new employees can join and existing participants do not accrue additional benefits. Its sole function is to pay out vested obligations to eligible former employees and retirees over time, gradually winding down the liability pool.
Who manages the plan's investments?
The plan does not publicly disclose a dedicated internal investment team. Administration is handled by Rachel Lopez at Abbott's headquarters in Abbott Park, Illinois. Investment management is likely outsourced to external consultants or managed through the treasury functions of the sponsoring companies. The plan has held funds managed by GMO, among other external managers.
What is the plan's investment strategy given it is frozen?
As a frozen defined benefit plan, the investment strategy is liability-driven, matching remaining assets against the projected benefit payment schedule. Public filings show diversified holdings. The plan also held a debtor-in-possession term loan to Hi-Crush Inc. during the company's 2020 bankruptcy, indicating selective exposure to distressed credit alongside core allocations.
Is the plan a meaningful capital allocator for external managers?
Its size is not publicly disclosed, but as a frozen plan with declining liabilities, its capital allocation activity is likely contracting over time. It functions primarily as a runoff vehicle rather than an active allocator deploying fresh capital, making it a smaller and more conservative opportunity for external managers than an open, accruing corporate pension.
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