# Allete & Affiliated Companies Retiree Health Plan B

Allete & Affiliated Companies Retiree Health Plan B is a Pension Fund based in Duluth, United States.

## Overview

- **Organization type:** Pension Fund
- **Headquarters:** Duluth, United States
- **Region:** North America
- **Address:** Duluth, MN, United States
- **Founded:** 1994
- **Assets under management:** $50–$100 million (Altss estimate)
- **LinkedIn:** https://www.linkedin.com/company/allete

## Regulatory record

- **Reports private funds:** No

## About

Allete & Affiliated Companies Retiree Health Plan B is a voluntary employees' beneficiary association established in 1994 to fund post-retirement health obligations for former employees of ALLETE, Inc. and its primary operating subsidiaries, including Minnesota Power and Superior Water, Light and Power Company. The plan covers approximately 575 retirees, their dependents, and surviving spouses, paying medical and dental claims as a legacy welfare-benefit vehicle rather than an active accumulation fund. The plan invests across two internally designated portfolios — an equity securities portfolio and a fixed-income portfolio — both managed from Duluth. Its investment posture is shaped entirely by a liability-driven mandate: assets must generate sufficient cash flow and total return to meet actuarially projected post-employment medical and dental obligations for a closed and aging participant base. The parent company, ALLETE, Inc., announced a merger agreement in May 2024 with Alloy Parent LLC, a joint entity formed by Canada Pension Plan Investment Board and Global Infrastructure Partners, a transaction that will take the publicly traded utility private and may affect the plan's future governance and funding posture. The plan's financial scale is modest by institutional standards, with assets estimated by Altss in the $50 million to $100 million range as of the most recent available filings. No separate offices, independent investment committee disclosures, or dedicated CIO postings appear in public records. The plan functions primarily as a claims-paying trust, not a return-maximizing pool of capital. What distinguishes this entity is its structure as a closed, single-employer VEBA — a trust vehicle permitted under Internal Revenue Code Section 501(c)(9) that legally segregates retiree health assets from the sponsor's general corporate treasury. As ALLETE transitions to private ownership under infrastructure fund control, the plan's funded status, investment policy, and relationship to the new parent represent the central governance question for the 575 covered lives who depend on it.

## Sectors

- Healthcare Services

## Questions

### What is the plan's legal structure and why does it matter?

The plan operates as a voluntary employees' beneficiary association and fraternal beneficiary society — a tax-exempt trust structure under Internal Revenue Code Section 501(c)(9). This structure legally separates the trust assets from ALLETE's general corporate assets, providing some protection in a bankruptcy or restructuring scenario, though the sponsor retains ultimate funding responsibility for unfunded liabilities.

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Last updated: 2026-08-11T02:43:31.692Z

Canonical page: https://altss.com/profile/allete-affiliated-companies-retiree-health-plan-b

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