Alcoa Corp. headquarters in Pittsburgh.
Alcoa Corp., Pittsburgh, purchased group annuity contracts from two Athene Holding subsidiaries to transfer about $1 billion in U.S. pension plan liabilities.
The aluminum company disclosed the transactions with the unnamed Athene subsidiaries, which are set to be completed later this month, in a news release Monday.
As a result of the annuity purchases, the Athene subsidiaries will take on the responsibility of paying benefits to about 4,400 participants in the U.S. pension plans in November, according to the news release.
It is the latest in a series of pension risk transfer transactions Alcoa has undertaken over the past year alone.
In December, Alcoa purchased group annuity contracts from Athene Holding subsidiaries to transfer about $500 million in U.S. pension plan liabilities, representing about 2,600 participants; and in November, the company purchased contracts from the Athene subsidiaries to transfer about $1 billion in U.S. pension plan liabilities, representing about 11,200 retirees and beneficiaries.
In October, Alcoa agreed to purchase a group annuity contract to transfer about $55 million in pension plan assets to an undisclosed insurer. The October agreement transferred the benefit-paying responsibility for about 800 retirees and former employees in one of the company's pension plans in Suriname.
As of Dec. 31, Alcoa's global pension plan assets totaled $4.3 billion, while projected benefit obligations totaled $4.59 billion, for a funding ratio of 93.7%, according to its latest 10-K filing.
Spokesman Jim W. Beck could not be immediately reached for further information.
