Armstrong World Industries Inc., Lancaster, Pa., entered into an agreement to purchase group annuity contracts from Athene Annuity and Life Co. and Athene Annuity & Life Assurance Co. of New York to transfer the majority of its U.S. pension plan liabilities.
The agreement, which transfers a total of $1 billion in liabilities from the Retirement Income plan for Employees of Armstrong World Industries Inc., affects about 10,000 retirees and beneficiaries. The company did not disclose when Athene and its subsidiary will take on benefit payments.
According to the plan's most recent Form 5500 filing, it had $1.36 billion in assets and a total of 10,744 retirees and beneficiaries receiving benefits. The remaining population of that date consisted of 1,804 former employees vested in the plan who have yet to receive benefits and 976 active participants.
According to the company's most recent 10-K filing, the plan had a 100% funding ratio as of Dec. 31, 2018.
The company expects to record a non-cash expense before the end of the first quarter of $350 million to $400 million.
Jennifer Johnson, company spokeswoman, could not be immediately reached to provide further information.