Alcoa Corp., Pittsburgh, paid out about $110 million in U.S. defined benefit plan assets on Nov. 30 to participants who selected a lump-sum offer.
The aluminum company offered a lump-sum window in October to some participants and paid out about $110 million to about 1,700 participants who selected the lump sum, according to a news release Wednesday.
How many participants were originally offered the lump sum, and the nature of the population of participants, was not disclosed.
The lump-sum payment is the latest move by Alcoa to derisk its defined benefit plans.
Last year, Alcoa purchased a group annuity contract from Athene Annuity and Life Co. to transfer about $290 million in U.S. DB plan liabilities. Athene assumed responsibility for benefit payments to about 10,500 retirees and beneficiaries in October 2018.
Earlier that year, Alcoa had purchased group annuity contracts from Sun Life Financial, Desjardins Financial Security Life Assurance Co. and Industrial Alliance Insurance and Financial Services Inc. to transfer a total of about $555 million in Canadian defined benefit plan obligations. Those insurance companies began making benefit payments to a total of about 2,100 retirees and their beneficiaries in July 2018.
The company previously announced in January 2018 it would freeze its defined benefit plans for its U.S. and Canadian salaried employees, effective Jan. 1, 2021.
Alcoa had $4.6 billion in plan assets as of Dec. 31 with a projected benefit obligation of $6 billion, for a funded status of 76.8%, according to its latest 10-K filing. The company did not break out assets by U.S. and non-U.S. plans.
Jim W. Beck, Alcoa spokesman, could not be immediately reached to provide further information.
