Lockheed Martin Corp., Bethesda, Md., purchased group annuity contracts from Athene Holding Ltd. to transfer about $4.9 billion in U.S. pension plan liabilities.
The purchase completed Tuesday will transfer the benefit-paying responsibilities for about 18,000 U.S. retirees and beneficiaries to Athene's wholly owned subsidiaries Athene Annuity and Life Co. and Athene Annuity & Life Assurance Company of New York, a news release from the aerospace and defense company said Tuesday.
The Athene subsidiaries will begin paying benefits to the retirees and beneficiaries in the Lockheed Martin Corporation Salaried Employee Retirement Program and the Lockheed Martin Aerospace Hourly Pension Plan on Jan. 1. Spokesman Trent J. Perrotto said in an email the population was “selected based on a number of factors, including the size of their monthly benefits and the start date of their payments."
The contracts were purchased using assets from Lockheed Martin's master retirement trust, the news release said.