Massachusetts Mutual Life Insurance Co. says it signed a pension-transfer agreement to provide group annuities to nearly 11,000 retirees of chemical giant PPG Industries that will reduce PPG’s pension obligations.
MassMutual didn’t disclose Tuesday financial terms of the pact. But it said it is part of a larger pension transfer that Pittsburgh-based PPG has undertaken for a total of 13,400 current retirees covered under plans for either salaried or non-union hourly workers, or their survivors.
For the 11,000 salaried plan retirees, MassMutual said it and Metropolitan Life Insurance Co. (MetLife) are each providing 50 percent of the monthly benefits.
MassMutual will administer the entire benefit payable to each salaried plan retiree. MetLife will pay its portion of the benefits through an administration agreement with MassMutual. MassMutual will begin making payments to these retirees, beginning Sept. 1.
“As more companies look to shift their pension liabilities off their balance sheets, they are seeking financially strong insurers with a long track record of administering pension plans,” said Keith McDonagh, senior vice president and head of MassMutual’s Institutional Solutions businesses.
