Federal Signal Corp., Oak Brook, Ill., entered into an agreement to purchase a group annuity contract from an insurance company to transfer about $24 million in U.S. pension plan liabilities.
The agreement, signed Nov. 5, will transfer the responsibility for paying benefits to about 800 retirees and beneficiaries to the undisclosed insurer, according to the company's 10-Q filing with the SEC on Tuesday.
The transaction will affect those participants in the Federal Signal Corp. Retirement Plan, according to the filing. The filing did not disclose how the population was determined.
As of Dec. 31, the U.S. pension plan had $142 million in assets and $180 million in projected benefit obligations, for a funding ratio of 78.9%, according to the company's most recent 10-K filing in February.
Ian A. Hudson, senior vice president and chief financial officer, could not be immediately reached for further information.