Rockwell Collins Inc., Cedar Rapids, Iowa, purchased a group annuity contract to transfer $103 million in pension plan liabilities to an insurance company, the company disclosed in its recent 10-K filing with the Securities and Exchange Commission.
The purchase agreement, which the company disclosed its Nov. 14 filing, took place in July and resulted in a projected benefit obligation decrease of $101 million, according to the 10-K. Rockwell Collins did not disclose the name of the insurance company, the nature of the population whose benefits are being transferred or when that insurer company will take over those benefits.
As of Sept. 30, following the transaction, pension plan assets totaled $3.186 billion, while projected benefit obligations totaled $4.202 billion, for a funding ratio of 75.8%, according to the 10-K filing. The company does not break down between U.S. and non-U.S. assets, but did note that the six non-U.S. plans' PBO is approximately 5% of the total PBO, or about $210 million.
Josh Baynes, company spokesman, could not be immediately reached to provide further information.
