Owens Corning, Toledo, Ohio, has entered into an agreement to purchase a group annuity contract from an insurance company to transfer $291 million in U.S. pension plan liabilities.
The agreement to transfer nearly half of Owens Corning's total U.S. pension plan liabilities was signed on Oct. 12, according to the company's Oct. 25 10-Q filing with the SEC.
The transaction with the undisclosed insurer is expected to close during the fourth quarter of 2023 and will be funded with $268 million in plan assets, according to the filing.
The filing did not disclose the nature of the population of participants whose benefits will now be paid by the insurance company.
As of Dec. 31, U.S. pension plan assets totaled $602 million, while projected benefit obligations totaled $638 million, for a funding ratio of 94.4%, according to its most recent 10-K filing with the SEC.
Owens Corning spokesperson Todd Romain could not be immediately reached for further information.