Visteon Corp., Van Buren Township, Mich., purchased a group annuity contract from Prudential Insurance Co. of America to transfer about $350 million of the company's $1.1 billion in U.S. pension liabilities, spokesman Jim Fisher said.
The company completed the purchase as part of its continuing effort to derisk its U.S. pension funds, which were frozen on Dec. 31, 2011. Affected participants are U.S. hourly retirees and beneficiaries who worked primarily at now-closed U.S. locations, including plants in Indiana and Pennsylvania, Mr. Fisher said.
The company previously made a lump-sum offer in fall 2012 for vested former employees who had yet to retire. That offer affected about half of the 20,000 participants; slightly more than 50% of the former employees took the offer.
As of Dec. 31, Visteon's U.S. pension funds had $960 million in assets and $1.081 billion in projected benefit obligations, for a funding ratio of 88.8%.