TimkenSteel Corp., Canton, Ohio, entered into an agreement to purchase a group annuity contract from the Prudential Insurance Co. of America to transfer about $250 million in U.S. pension plan liabilities.
The pension buyout transaction will settle more than a quarter of the total liabilities in the TimkenSteel Corp. Bargaining Unit Pension Plan, according to an 8-K filing with the SEC on Wednesday.
The transaction affects about 1,900 retirees and beneficiaries who are currently receiving benefits, the filing said. Prudential will begin paying benefits to the population effective Oct. 1.
The filing does not disclose how the population was selected.
As of Dec. 31, the TimkenSteel Corp. Bargaining Unit Pension Plan had $863 million in assets and $884 million in projected benefit obligations, for a funding ratio of 97.6%, according to the company's latest 10-K filing.
Company spokeswoman Jennifer Beeman could not be immediately reached for further information.
