Molson Coors buys annuity to transfer $340 million in pension liabilities

Molson Coors Beverage Co., Golden, Colo., purchased a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer $340 million in U.S. pension plan liabilities.

The pension buyout transaction with the insurer was completed July 27, according to an 8-K filing with the SEC on Tuesday.

While the 8-K filing did not disclose the name of the insurer, a letter to retirees obtained by Pensions & Investments named MassMutual.

The terms of the contract transfers the benefit-paying responsibility of about 20% of the company’s U.S. pension plan liabilities to the insurer, according to the filing. The filing did not disclose how many retirees and beneficiaries are affected.

As of Dec. 31, the company’s pension plan assets totaled $5.667 billion, while projected benefit obligations totaled $5.096 billion, for a funding ratio of 111.2%, according to the company’s most recent 10-K filing with the SEC. The company maintains pension plans in the U.S., U.K. and Canada, and the 10-K filing did not provide assets by region.

Spokeswoman Jennifer Martinez-Roth could not be immediately reached for further information.