PPG Industries Inc., Pittsburgh, has agreed to transfer $1.6 billion in pension liabilities to Massachusetts Mutual Life Insurance Co. and MetLife, said a news release from PPG.
Under the agreement, PPG's pension plans will purchase group annuity contracts from MassMutual and MetLife for about 13,400 current U.S. salaried and non-union hourly retirees or their survivors who began receiving their monthly retirement benefit payments on or before April 1, 2016. MassMutual and MetLife will each pay 50% of the benefits to the 11,000 salaried retirees. MetLife will handle the benefits for the non-union hourly retirees.
All other PPG plan participants will remain in the company's plans.
The agreement will transfer the payment administration and obligations to these insurance companies. This transfer is consistent with previous PPG actions better manage the company's pension process, according to the release. The release did not provide details on those previous actions.
There will be no change to the monthly retirement benefit payments currently received by retirees or their survivors, PPG said. The value of pension benefits earned to date under these plans will not be impacted by these changes.
PPG will no longer be administratively or financially responsible for the qualified defined benefit pension payment for those retirees or survivors transferred to MassMutual and MetLife. MassMutual and MetLife assume the obligation to make all future annuity payments.
No action is required on the part of retirees and surviving beneficiaries included in the transfer.
PPG had $2.733 billion in U.S. pension plan assets as of Sept. 30, according to Pensions & Investments data.
PPG spokesman Mark Silvey could not be immediately be reached for further information.