Rollins Inc., Atlanta, purchased a group annuity contract from American International Group to transfer the remaining liabilities of its U.S. pension plan to complete the termination of the plan, the company announced in a news release Thursday.
The company purchased the contract to transfer $198.3 million in U.S. pension plan liabilities following the distribution of lump-sum payments to employees who chose that option and premium payments to the Pension Benefit Guaranty Corp.
The plan was frozen in 2005. According to the news release, the plan has $32 million remaining in assets following the completion of the annuity contract and payment of an undisclosed premium to AIG, as a result of a funding surplus.
Rollins "has evaluated the allowable opportunities for utilization of the excess assets including funding other employee benefits and a reversion of the pension assets to the company per ERISA regulations," the news release said.
"Completing the pension transition creates several advantages for Rollins and its employees," said Eddie Northen, senior vice president, chief financial officer and treasurer, in the news release. "Some of the positives include managing the volatility of our assets, and eliminating both the annual contribution and daily administrative management of the plan."
Mr. Northen could not be immediately reached to provide further information.