Pactiv LLC, Lake Forest, Ill., agreed to purchase a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer about $950 million in U.S. pension plan liabilities.
The agreement, signed July 14, transfers the responsibility of paying benefits to about 16,300 retirees and beneficiaries to the insurer beginning Nov. 1, according to an 8-K filing Tuesday from parent company Pactiv Evergreen Inc.
The buyout represents about 22% of the Pactiv Evergreen Pension Plan's total liabilities and will be funded directly from plan assets, according to the filing.
Pactiv Evergreen's most recent 10-K filing said the Pactiv Evergreen Pension Plan represented 100% of the company's defined benefit plan assets and 99% of its liabilities as of Dec. 31.
As of that same date, DB plan assets totaled $4.191 billion, while projected benefit obligations totaled $4.664 billion, for a funding ratio of 89.9%.
Company spokeswoman Beth Kelly could not be immediately reached for further information.