Owens Corning, Toledo, Ohio, purchased a group annuity contract to transfer $89 million in U.S. pension plan liabilities from an insurance company.
The transaction, which closed Oct. 2, was funded with $83 million in plan assets, according to the company’s 10-Q filing Wednesday with the SEC. The name of the insurance company is not currently being disclosed, said Owens Corning spokeswoman Katie Merx. She said the purchase will affect retirees who receive monthly benefits of less than $600 a month.
As of Dec. 31, U.S. pension plan assets totaled $727 million, while projected benefit obligations totaled $891 million, for a funding ratio of 81.6%, according to the company’s most recent 10-K filing.