Pactiv LLC, Lake Forest, Ill., agreed to purchase a group annuity contract from Metropolitan Tower Life Insurance to transfer about $1.26 billion in U.S. pension plan liabilities.
The agreement, signed Feb. 16, transfers the responsibility of paying benefits to about 13,300 retirees and beneficiaries to the insurer beginning June 1, according to an 8-K filing Wednesday from parent company Pactiv Evergreen Inc.
The buyout represents about 40% of the Pactiv Evergreen Pension Plan's current total liabilities and will be funded directly from plan assets, according to the filing.
Pactiv Evergreen's most recent 10-K filing with the SEC 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, 2020.