Huntington Ingalls Industries Inc., Newport News, Va., purchased a group annuity contract from an undisclosed insurance company to transfer $411 million in U.S. pension plan liabilities.
The aerospace and defense company completed the purchase Nov. 3, according to its 10-K filing with the SEC on Feb. 1.
The purchase transfers the responsibility of paying benefits to about 10,000 retirees and beneficiaries, according to the filing.
The filing said the annuity contract was purchased using assets from its pension plan master trust, and the company did not have to make any additional contributions to that master trust.
It was the second pension buyout transaction for the company in two years. In September 2022, the company purchased multiple group annuity contracts from insurance companies — also undisclosed — to transfer about $32 million in U.S. pension plan liabilities, representing the benefits of about 500 retirees and beneficiaries.
As of Dec. 31, the company's pension plan assets, all based in the U.S., totaled $6.87 billion, while projected benefit obligations totaled $6.24 billion, for a funding ratio of 110.1%, according to the 10-K filing.
Spokesperson Danny Hernandez could not be immediately reached for further information.
