Kellogg Co., Battle Creek, Mich., purchased a group annuity contract from an insurance company in December to complete a pension buy-in transaction for its U.K. pension plan.
The contract covers about $268 million in liabilities, according to the food-maker's 10-K filing Monday with the SEC.
Kellogg will retain the assets and liabilities under the contract, which the undisclosed insurer will cover, the 10-K filing said.
It was the third pension derisking effort for the company in the past two years. In October, Kellogg purchased a group annuity contract from an insurance company to transfer about $470 million in U.S. pension plan assets and liabilities.
The company also previously offered a lump sum in September 2019 to former employees in its U.S. pension plans who had to yet to retire. About $174 million in plan assets was distributed to those who elected the lump sum.
As of Dec. 31, global pension plan assets totaled $5.211 billion, while projected benefit obligations totaled $5.675 billion, for a funding ratio of 91.8%, according to the 10-K filing. Assets and liabilities were not broken down by region.
Kellogg officials declined to provide additional information.
