Kellogg Co., Battle Creek, Mich., has completed a pension buy-in transaction to insure about $590 million in liabilities for its U.K. pension plan.
The food company purchased a group annuity contract from an undisclosed insurance company to complete the transaction in May, according to its 10-Q filing with the SEC on Thursday.
Kellogg retains responsibility for paying benefits to the affected participants, which are now insured under the terms of the buy-in contract by the insurer.
It is the first known pension risk transfer transaction by the U.S.-based company for its U.K. pension plan. In 2020, Kellogg purchased a group annuity contract from another undisclosed insurer to transfer about $470 million in U.S. pension plan assets and liabilities.
As of Dec. 31, Kellogg's global pension plans had a total of $3.067 billion in assets, while projected benefit obligations totaled $3.471 billion, for a funding ratio of 88.4%, according to its most recent 10-K filing. The filing does not provide assets by region.
Kellogg officials could not be immediately reached for further information.
