Newell Brands Inc., Atlanta, has entered into an agreement to purchase a group annuity contract from an insurance company to transfer between $160 million to $175 million in U.S. pension plan liabilities.
The company entered into the agreement with the undisclosed insurer in October, according to its Oct. 27 10-Q filing with the SEC.
The purchase will transfer the responsibility of paying benefits to about 55% of retirees in one of Newell Brands' U.S. pension plans, according to the filing.
Newell Brands previously purchased a group annuity contract in October 2020 from Massachusetts Mutual Life Insurance Co., transferring $155 million to $160 million in U.S. pension plan liabilities.
That purchase, the company said at the time, transferred the benefit-paying responsibilities to about 45% of that plan's retirees.
As of Dec. 31, the company's U.S. pension plan assets totaled $843 million, while projected benefit obligations totaled $936 million, for a funding ratio of 90.1%, according to its most recent 10-K filing.
Officials at Newell Brands could not be immediately reached for further information.