Raytheon Co., Waltham, Mass., purchased a group annuity contract to transfer $923 million in U.S. pension plan liabilities, the company announced in a news release on Thursday.
The contract, signed on July 17, transfers about 13,000 U.S. retirees and beneficiaries to the responsibility of Prudential Life Insurance Co. of America, a Prudential news release confirmed. Raytheon said the affected group represents former employees of its discontinued operations.
Raytheon also announced it will make a discretionary contribution of $1.25 billion to its U.S. defined benefit plan before Sept. 15. As of Dec. 31, Raytheon's U.S. pension plan assets totaled $20.075 billion, while projected benefit obligations totaled $26.15 billion, for a funding ratio of 76.8%, according to the company's most recent 10-K filing. Raytheon contributed $1.6 billion to its worldwide pension plans in 2017.
Corinne Kovalsky, Raytheon spokeswoman, could not be immediately reached to provide further information.