Boise Cascade Co., Boise, Idaho, agreed to purchase a group annuity contract from Prudential Insurance Co. of America to transfer about $150 million in pension plan liabilities, the company disclosed in an 8-K filing with the Securities and Exchange Commission on Friday.
Boise Cascade signed a commitment letter for the purchase on Wednesday and will fund the premium from plan assets, which the company plans to transfer to Prudential on April 25. Prudential will begin paying the benefits of transferred retirees on July 1. Boise Cascade did not identify the amount of the premium or the nature of the population of retirees whose benefits are being transferred.
The company previously made a lump-sum offer in 2016 to terminated vested employees along with active employees who would elect to retire on or before Nov. 1, 2016, and made total payments of $21 million.
Pension plan assets totaled $422.2 million as of Dec. 31, while projected benefit obligations totaled $483.5 million, for a funding ratio of 87.3%, according to the company's most recent 10-K filing.
John Sahlberg, spokesman for the lumber manufacturer and distributor, could not be immediately reached to provide further information.