Materion Corp., Mayfield Heights, Ohio, is purchasing a group annuity contract from Mutual of America Life Insurance Co. to transfer about $111 million in U.S. pension liabilities, the company disclosed in an 8-K filing with the SEC on Monday.
The material products and technology company will transfer the responsibilities for the benefits of about 1,150 U.S. retirees who retired before June 1 and any beneficiaries. The amount represents 43.4% of the company's total of $256 million in U.S. pension liabilities. Mutual of America will begin processing benefit payments effective Jan. 1, 2019.
The purchase will be funded by existing plan assets and no additional contribution to the plan will be necessary, the filing said.
As of Dec. 31, Materion's global pension plan assets totaled $235 million, while projected benefit obligations totaled $313.7 million, for a funding ratio of 74.9%, according to the company's most recent 10-K filing. That filing did not break down pension plan assets by region.
Spokesman John G. McCloskey could not be immediately reached to provide further information.