Kellogg Co., Battle Creek, Mich., purchased a group annuity contract from an insurance company to transfer about $470 million in U.S. pension plan assets and liabilities.
The transaction was completed in October and affected about 8,000 retirees in its U.S. pension plan, according to an Oct. 30 10-Q filing with the SEC.
Kellogg did not disclose the name of the insurer or the nature of the population of retirees. Kellogg previously offered a lump sum in September 2019 to former employees in its U.S. pension plans who had to yet to retire. About $174 million in plan assets was distributed to those who elected the lump sum.
As of Dec. 31, Kellogg's global pension plan assets totaled $5.17 billion, while projected benefit obligations totaled $5.654 billion, for a funding ratio of 91.4%, according to the company's most recent 10-K filing.
As of that same date, the Kellogg Co. Pension Plan, the company's largest U.S. plan, had $2.6 billion in assets and about 11,000 participants receiving benefits at that time, according to the company's most recent Form 5500 filing.
Kellogg officials could not be immediately reached for further information.