Trinity Industries Inc., Dallas, purchased a group annuity contract from Banner Life Insurance and William Penn Life Insurance Co. of New York to transfer the remaining liabilities of its U.S. pension plan.
The purchase from the Legal & General America subsidiaries will be completed on or around Wednesday, according to an 8-K filing Dec. 4 with the SEC.
The contract transfers the benefit payment responsibilities to the insurers for about 7,850 participants. The company expects to recognize about $160 million in pension settlement charges for the fourth quarter, according to the 8-K filing. How much in assets was transferred could not be immediately learned.
The purchase completes the termination of the Trinity Industries Inc. Consolidated Pension Plan. According to Trinity's most recent 10-K filing, the company's board of directors approved the termination on Sept. 4, 2019.
As of Dec. 31, 2019, plan assets totaled $549 million, while projected benefit obligations totaled $558 million, for a funding ratio of 98.4%, according to the 10-K filing.
Spokesman Jack L. Todd declined to comment.