Boise Cascade trims pension liabilities with $20 million buyout

Boise Cascade Co., Boise, Idaho, purchased its third group annuity contract from Prudential Insurance Co. of America to transfer $20 million in U.S. pension plan assets.

The transaction, completed Sept. 30, represents about 10% of the lumber manufacturer and distributor's U.S. pension plan liabilities, according to the company's 8-K filing Thursday with the SEC.

It is the company's third pension plan buyout transaction with Prudential in the last two years.

Boise Cascade in April 2018 transferred $152 million in U.S. pension plan assets to Prudential, and transferred an additional $125 million to the insurance company in August 2018.

Wayne Rancourt, executive vice president, chief financial officer and treasurer, said in an August 2018 interview that the first buyout transaction covered retirees and beneficiaries with smaller monthly benefit amounts, while the second transaction covered about 420 retirees and beneficiaries with larger monthly benefits.

The nature of the population affected by this third transaction could not be immediately learned.

The company previously made a lump-sum offer in 2016 to terminated vested employees along with active employees who would elect to retire on or before Nov. 1, 2016, and made total payments of $21 million.

As of Dec. 31, pension plan assets totaled $155 million, while projected benefit obligations totaled $177 million, for a funding ratio of 87.6%, according to the company's most recent 10-K filing.

Mr. Rancourt and Lisa Chapman, company spokeswoman, could not be immediately reached to provide further information.