3M Co., St. Paul, Minn., purchased a group annuity contract from Metropolitan Tower Life Insurance Co. to transfer about $2.5 billion in U.S. pension plan liabilities.
The transaction with the MetLife subsidiary will transfer the responsibility of paying benefits to about 23,000 retirees and beneficiaries in its primary U.S. pension plan effective Oct. 1, according to an 8-K filing with the SEC on June 13.
In January, 3M announced it would freeze its U.S. pension plans for nonunion employees at the end of 2028. It will affect employees at both 3M and Solventum, the healthcare company that spun off from 3M in April.
The company had closed the 3M Employee Retirement Income Plan, its primary U.S. pension plan, to new hires effective Jan. 1, 2009.
As of Dec. 31, 3M’s U.S. pension plan assets totaled $12.348 billion, while projected benefit obligations totaled $13.498 billion, for a funding ratio of 91.5%, according to its most recent 10-K filing.
