Weyerhaeuser cuts down pension liability with annuity deal

Weyerhaeuser Co., Seattle, purchased a group annuity contract from Metropolitan Tower Life Insurance Co. to transfer about $765 million in U.S. pension plan liabilities.

The purchase from the MetLife subsidiary closed on Dec. 23, according to an 8-K filing Monday with the SEC.

The purchase transfers the responsibility of paying monthly benefits to nearly 5,200 retirees and beneficiaries, the filing said. Spokeswoman Laura Smith said the transaction affects retirees and beneficiaries who receive less than $1,495 a month in benefits.

It is the timberland company's second PRT transaction in the last three years. In January 2019, the company entered into an agreement to purchase a group annuity contract from Athene Annuity and Life Co. to transfer about $1.5 billion in U.S. pension plan liabilities.

That transaction affected about 28,500 U.S. retiree and beneficiaries who were receiving benefits of less than $1,085 a month, Ms. Smith said at the time.

As of Dec. 31, 2019, Weyerhaeuser's U.S. and Canadian pension plan assets totaled $3.719 billion, while projected benefit obligations totaled $4.26 billion, for a funding ratio of 87.3%, according to the company's most recent 10-K filing. The company did not separate assets by region.