Ariana Grande’s ‘7 Rings’ Means ‘Ka-Ching’ for Michigan Retirement Pensioners

Ariana Grande, pensioners
Ariana Grande’s latest single is making money for Michigan’s pension program.

Is there a lesson for 401k investment menus?

It’s not often you can put “Ariana Grande” and “pension plans” in the same sentence. But there’s a tangible connection, thanks to the pop singer’s latest hit song.

Per a recent article in the Lansing State Journal, in a roundabout way, Michigan pensioners benefit every time Ariana Grande’s chart-topping song “7 Rings” hits the airwaves, is streamed or downloaded.

Turns out Grande pays royalties to Richard Rodgers and Oscar Hammerstein II, creators of “The Sound of Music,” because Grande’s “7 Rings” channels the melody of the movie’s iconic song “My Favorite Things.”

Michigan’s pension funds invested in the company that owns the rights to Rodgers & Hammerstein music, so pensioners started seeing a boost when “7 Rings” hit the pop charts.

“7 Rings” has been on the Billboard “Hot 100” chart for 12 weeks, debuting at No. 1 in early February and staying there for 10 weeks as America’s hottest overall song.

The song has broken multiple sales records across numerous platforms, which is music to the ears of Michigan pensioners. It topped Spotify’s 24-Hour and Weekly Global Streaming records, and was the largest music video debut on YouTube (the official video has nearly 339 million views).

Each time “7 Rings” is played, 90% of the songwriting royalties go to Concord Music, which acquired the copyrights to Rodgers & Hammerstein’s collection. Concord Music is majority owned by Michigan’s pension funds. Specific figures of what the song has generated were not estimated in the article.

“Every time you hear a song, somebody’s getting paid,” Michigan Deputy Treasurer Jon Braeutigam said in the Lansing State Journal article. “Whether it’s in a commercial or in a restaurant or on Spotify, Apple Music, Youtube, you get paid.”

Among the many other artists whose work benefits Concord Music (and Michigan pensioners): KidzBop, Creedence Clearwater Revival (BTW: Creedence’s John Fogerty will be a featured performer on May 9 at the SALT Conference in Las Vegas), post-Beatles Paul McCartney and George Harrison, Dolly Parton, Ray Charles and Santana.

According to the article, Michigan Treasury Department investment experts have put about $1.1 billion of Michigan’s $72 billion pension funds into Concord Music.

The state’s investment is now worth $1.8 billion, which means Michigan has earned $700 million from the investment since it made the original $25 million investment in 2010.

Maybe music is part of the solution to underfunded pension plans. Michigan Treasury Department’s Bureau of Investments views music as a stable investment, less dependent on the economy because while a recession may make people stop buying big-ticket items, they don’t stop listening to music.

It also has long-term value, as copyrights last for 70 years after an artist’s death.

According to the state’s Office of Retirement Services, school teacher pensions are 60.7% funded, state police pensions are 65.1% funded, state employee pensions are 66.5% funded and judges’ pensions are 97.8% funded. The average U.S. funding ratio is 66%.

About 530,000 people are tied into Michigan’s pension funds, including about 281,500 who are retired and 227,000 still working.

Brian Anderson Editor
Editor-in-Chief at  | banderson@401kspecialist.com | + posts

Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.

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