MetLife Signs Pension Buyout Agreement with PPG
June 28 2016 - 09:00AM
Business Wire
Metropolitan Life Insurance Company (MetLife) has announced
today that PPG has entered into an agreement with both MetLife and
Massachusetts Mutual Life Insurance Company (MassMutual) to provide
annuity benefits to approximately 13,400 retirees in PPG’s defined
benefit (DB) pension plans, representing pension obligations of
$1.6 billion.
“MetLife is pleased to be working with PPG to remove the risks
and liabilities associated with its pension plans,” says Wayne
Daniel, Senior Vice President, U.S. Pensions, MetLife. “As a market
leader with 90+ years of experience and $38 billion of transferred
pension liabilities, MetLife can provide PPG with the security and
knowledge that their risks are well-managed and their participants’
benefits are protected.”
The transaction involves two groups of retirees – salaried and
non-union hourly. For 11,000 salaried retirees, MetLife and
MassMutual are each providing 50 percent of the monthly benefits.
MassMutual will act as lead administrator. MetLife will pay its
portion of the benefits through an administration agreement with
MassMutual. MetLife will be the exclusive provider for the
non-union hourly group, making payments directly to the
retirees.
The transaction, subject to certain conditions, is expected to
close later in 2016. It will be executed with a combination of cash
and assets-in-kind. PPG will purchase group annuity contracts from
MetLife and MassMutual. The insurance companies will assume
responsibility for making benefit payments to the retirees or their
survivors covered by the agreement. The transaction will not change
the amount of the monthly benefit received by the affected parties.
MetLife and MassMutual, rather than PPG, will be responsible for
making these monthly payments following the close of the
transaction; no action is needed by the plan participants.
About MetLife
MetLife, Inc. (NYSE:MET), through its subsidiaries and
affiliates (“MetLife”), is one of the largest life insurance
companies in the world. Founded in 1868, MetLife is a global
provider of life insurance, annuities, employee benefits and asset
management. Serving approximately 100 million customers, MetLife
has operations in nearly 50 countries and holds leading market
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the
paints, coatings and materials that our customers have trusted for
more than 130 years. Through dedication and creativity, we solve
our customers’ biggest challenges, collaborating closely to find
the right path forward. With headquarters in Pittsburgh, we operate
and innovate in more than 70 countries and reported net sales of
$15.3 billion in 2015. We serve customers in construction, consumer
products, industrial and transportation markets and aftermarkets.
To learn more, visit www.ppg.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160628005315/en/
MetLife, Inc.Judi Mahaney, 212-578-7977jmahaney@metlife.com
MetLife (NYSE:MET)
Historical Stock Chart
From Feb 2024 to Mar 2024
MetLife (NYSE:MET)
Historical Stock Chart
From Mar 2023 to Mar 2024