Archer Daniels Midland Co., Chicago, purchased group annuity contracts from three insurance companies to transfer a total of about $700 million in U.S. pension plan liabilities.
The food processing company on April 1 purchased group annuity contracts from American General Life Insurance Co., its affiliate The United States Life Insurance Co. in the City of New York, and Principal Life Insurance Co., it disclosed in a 10-Q filing with the SEC on Wednesday.
The purchase transfers the benefit-paying responsibility to the insurers of about 6,000 retirees and former employees who have yet to retire who are vested in the ADM Retirement Plan and the ADM Pension Plan for Hourly-Wage Employees.
How those responsibilities will be split among the three insurers was not disclosed. The insurers will take on the responsibility of paying benefits on July 1, ADM spokeswoman Jackie Anderson said in an email. She referred further questions to the 10-Q filing.