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Pension Funds

Leggett & Platt discloses it is considering annuity buyout

Leggett & Platt Inc., Carthage, Mo., might purchase a group annuity contract to transfer some U.S. pension plan liabilities, the company disclosed in its 10-Q filing with the Securities and Exchange Commission on Tuesday.

The company anticipates making a purchase sometime in the fourth quarter if it decides to do so, and is targeting retirees who are currently "receiving a small monthly benefit," the filing said.

Leggett & Platt is considering the purchase "to reduce the size of our pension benefit obligation, reduce volatility of contribution requirements in future years and also reduce pension-related operational expenses over the long term," the filing added.

As of Dec. 31, pension plan assets totaled $214.1 million, while projected benefit obligations totaled $293 million, for a funding ratio of 73.1%, according to the company's most recent 10-K filing.

David M. DeSonier, company spokesman, could not be immediately reached to provide further information.