Molson-Coors taps annuity to transfer $185 million in pension liabilities

Molson-Coors Beverage Co., Golden, Colo., purchased a group annuity contract from BMO Insurance to transfer about $185 million in Canadian pension plan liabilities, spokesman Josh Noel said in an email.

The purchase transferring the benefits of about 1,000 retirees and beneficiaries was completed in December, according to a 10-K filing with the SEC on Tuesday.

The filing said "all of the pension liabilities" were transferred to the insurance company, and that the remaining portion of assets and liabilities are recorded as a pension buy-in transaction.

It was the second pension buyout by the beverage company in 2022. In August, Molson Coors disclosed it had purchased a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer $340 million in U.S. pension plan liabilities.

As of Dec. 31, the company's pension plan assets totaled $3.337 billion, while projected benefit obligations totaled $2.978 billion, for a funding ratio of 112.1%, up from 111.2% the prior year, according to the 10-K filing. The company maintains pension plans in the U.S., U.K. and Canada; the 10-K filing did not provide assets by region.