Windsor-based Voya Financial said it has entered into one of its largest pension risk transfer arrangements ever.
Voya’s retirement insurance and annuity company has entered an agreement to provide pension payments to approximately 5,000 retirees and beneficiaries currently covered by Chemtura Corp., a specialty chemical company with operations in Middlebury.
In exchange for Voya taking on the financial obligation, Chemtura will purchase a group annuity contract representing approximately $350 million in premiums to be paid to Voya, the insurer said.
As previously reported, as companies have frozen or curtailed their pensions or “defined-benefit” plans, the number of Connecticut private-sector workers and retirees with a single-employer pension (519,000) has plummeted 42 percent over the last decade, federal data shows.
Beginning on May 1, 2016, Voya will start making the pension payments to retirees and beneficiaries of the plan. Individuals will continue to receive their same monthly benefits.
Correction: The original version of this article overstated the relative size of Voya’s deal with Chemtura. It is one of Voya’s largest such deals to date.
