LSC Communications Inc., Chicago, purchased a group annuity contract from an insurance company to transfer about $477 million in U.S. pension plan liabilities, the commercial printing company disclosed in a 10-K filing with the Securities and Exchange Commission on Tuesday.
The transaction was completed earlier this year, the filing said. The company did not disclose the name of the insurance company or the number of retirees whose benefit payments will now be transferred to that company.
As of Dec. 31, before the completion of the transaction, U.S. qualified pension plan assets totaled $2.27 billion, while projected benefit obligations totaled $2.32 billion, for a funding ratio of 97.7%. LSC did not contribute any money to its U.S. plans and does not expect to make any contributions in 2019.
Janet M. Halpin, senior vice president, treasurer and investor relations, could not be immediately reached to provide further information.