AAR Corp., Wood Dale, Ill., purchased group annuity contracts from American National Insurance Co. and American National Life Insurance Co. of New York to complete the termination of its pension plan.
The purchase closed on Aug. 22, according to an 8-K filing.
As a result of the purchase, the insurers will take on the responsibility of paying the benefits for about 900 participants and beneficiaries beginning on Nov. 1, according to the filing.
AAR Corp. also noted in the filing it expects to have about $7 million in surplus pension plan assets available, and it plans to use that surplus to fund contributions for one of its qualified 401(k) plans.
As of Dec. 31, pension plan assets totaled $62 million, while projected benefit obligations totaled $54 million, for a funding ratio of 114.8%, according to the company's most recent 10-K filing.
AAR Corp. officials could not be immediately reached for further information.
