Lumen Technologies transfers $1.4 billion in pension liabilities with annuity buyout

Lumen Technologies Inc., Monroe, La., entered into an agreement to purchase a group annuity contract from an insurance company to transfer about $1.4 billion in U.S. pension plan liabilities.

The agreement, signed Oct. 19, will transfer to an insurer the benefit-paying responsibility of about 22,600 retirees and beneficiaries in Lumen’s Combined Pension Plan, spokesman Mark Molzen said in an email. He said the company is unable to provide the name of the insurer.

The insurer will take on those responsibilities effective Dec. 31, according to a 10-Q filing with the SEC on Wednesday.

As of Dec. 31, 2020, the combined pension plan had a total of $10.546 billion in assets, while projected benefit obligations totaled $12.202 billion, for a funding ratio of 86.4%, according to the company's most recent 10-K filing with the SEC.