Lockheed Martin Corp., Bethesda, Md., purchased group annuity contracts from Athene Holding Ltd. to transfer about $4.3 billion in U.S. pension plan liabilities.
The purchase completed on June 24 will transfer the benefit-paying responsibilities for about 13,600 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, the aerospace and defense company disclosed in an 8-K filing with the SEC Monday.
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.
The contracts were purchased using assets from Lockheed Martin's master retirement trust, the 8-K filing said. Company spokesman Trent J. Perrotto said in an email the population was selected based on the size of their monthly benefits and when those benefit payments started.
This is the latest in a series of pension risk transfer transactions that Lockheed Martin has undertaken over the past several years and the second in the past year alone.