Valvoline Inc., Lexington, Ky., transferred $134 million in U.S. pension plan liabilities in September to former employees who had accepted a lump-sum offer, the company disclosed Wednesday in a 10-K filing with the SEC
The company said in the filing that 2,600 participants, all former employees who were vested in the plan but who had yet to retire, accepted the offer. Valvoline did not disclose to how many participants the offer was originally made.
It is the latest in a series of derisking moves for Valvoline, which purchased a group annuity contract in September 2016 from an undisclosed insurance company to transfer about $378 million in U.S. pension plan liabilities, representing the benefits of about 14,800 retirees and beneficiaries and an additional contract from an undisclosed insurer in August 2017 to transfer another $585 million, representing about 6,000 retirees and beneficiaries.
Valvoline was spun off from Ashland Inc., also in Lexington, Ky., in September 2016. In 2015, Ashland offered 21,000 former employees who were vested in its plans but had yet to retire a window to accept either a lump sum or reduced annuity. About 12,000 former employees accepted the offer, and Ashland paid out $475 million to those participants.
As of Sept. 30, pension plan assets totaled $1.792 billion, while projected benefit obligations totaled $2.087 billion, for a funding ratio of 85.9%.
Valvoline spokeswoman Valerie Schirmer could not be immediately reached to provide further information.
