Teradyne Inc., North Reading, Mass., purchased a group annuity contract from an insurance company to transfer about $151 million in U.S. qualified pension plan liabilities, the company disclosed in a 10-Q filing with the SEC on Friday.
The insurer, which Teradyne did not identify, in the second quarter took on the benefit payments of all the plan's 1,700 U.S. retiree participants.
As of Dec. 31, U.S. pension plan assets totaled $325 million, while projected benefit obligations totaled $363 million, for a funding ratio of 89.5%, according to the automation testing company's most recent Securities and Exchange Commission 10-K filing.
Company spokesman Andy Blanchard could not be immediately reached to provide further information.
