Newell Brands Inc., Atlanta, purchased a group annuity contract from Massachusetts Mutual Life Insurance Co., transferring $155 million to $160 million in U.S. pension plan liabilities.
The Oct. 22 transaction transfers the benefit-paying responsibility of about 45% of the retirees in one of the company's U.S. pension plans, according to a 10-Q filing with the SEC Friday. The plan is the Newell Brands Consolidated Pension Plan, spokeswoman Beth Stellato said in an email.
Predecessor company Newell Rubbermaid Inc. previously offered lump sums in 2014 and 2015 to about 5,700 and 3,300 former employees, respectively, who had yet to retire at the time.
Newell Brands was formed in 2016 from the merger of Newell Rubbermaid and Jarden Corp.
As of Dec. 31, U.S. pension plan assets totaled $1.228 billion, while projected benefit obligations totaled $1.449 billion, for a funding ratio of 84.7%, according to Newell Brands’ most recent 10-K filing.
