Philips North America buys group annuity to transfer some pension liabilities
Bloomberg
Philips North America LLC, Cambridge, Mass., purchased group annuity contracts from Metropolitan Tower Life Insurance Co. and Principal Life Insurance Co. to transfer the liabilities of certain pension plan participants.
Met Tower Life is guaranteeing 75% of participants benefits and Principal is guaranteeing 25% of benefits, according to a Feb. 11 letter to participants obtained by
Pensions & Investments.
Met Tower Life, a MetLife subsidiary, will be lead administrator and will begin sending participants their monthly benefits March 1, according to the letter.
The letter said Philips selected the two insurers based on their financial ratings, customer service, experience and reputations.
Weyerhaeuser cuts down pension liability with annuity deal
Bloomberg
Weyerhaeuser Co., Seattle, purchased a group annuity contract from Metropolitan Tower Life Insurance Co. to transfer about $765 million in U.S. pension plan liabilities.
The purchase from the MetLife subsidiary closed on Dec. 23, according to an 8-K filing Monday with the SEC.
The purchase transfers the responsibility of paying monthly benefits to nearly 5,200 retirees and beneficiaries, the filing said. Spokeswoman Laura Smith said the transaction affects retirees and beneficiaries who receive less than $1,495 a month in benefits.
It is the timberland company s second PRT transaction in the last three years. In January 2019, the company entered into an agreement to purchase a group annuity contract from Athene Annuity and Life Co. to transfer about $1.5 billion in U.S. pension plan liabilities.