Arconic buys group annuity for $250 million in U.K. pension liabilities

Arconic Corp., Pittsburgh, purchased a group annuity contract from an insurer to transfer about $250 million in U.K. pension plan liabilities.

The company said the transaction during the second quarter "mitigates future mortality, inflation and yield curve risk" in an 8-K filing Tuesday with the SEC.

The company did not disclose from which insurer it purchased the group annuity contract.

Arconic Corp. was formed April 1 as a result of the separation of Arconic Inc. into two companies. The other company is Howmet Aerospace Inc.

As of Dec. 31, Arconic Inc. had $4.9 billion in global pension plan assets and $7.3 billion in projected benefit obligations, for a funding ratio of 67.1%, according to the company's February 10-K filing. The company did not break down assets and liabilities by region.

The company announced in that filing that it expects to contribute $475 million to its pension plans in 2020, of which $403 million is for its U.S. plans.

Arconic Corp. officials could not be immediately reached for further information.