Valvoline Inc., Lexington, Ky., announced in its 10-K filing with the SEC on Monday that it has purchased a group annuity contract from an insurance company, transferring about $378 million in U.S. defined benefit plan liabilities.
The company did not identify the insurance company. The purchase was completed in September and affects about 14,800 plan participants.
The company's pension plans were frozen Sept. 30. Valvoline was spun off from Ashland Inc., also in Lexington, Ky., earlier that month. In 2015, Ashland offered 21,000 former employees who were vested in its plans but had yet to retire a window to accept either a lump sum or reduced annuity. About 12,000 former employees accepted the offer and Ashland paid out $475 million to those participants.
As of Sept. 30, global defined benefit plan assets at Valvoline totaled $2.307 billion, with projected benefit obligations totaling $3.138 billion, for a funding ratio of 73.5%, in the 10-K filing, which did not split U.S. and non-U.S. assets.
Daryl Love, Valvoline spokesman, could not be immediately reached to provide further information.
