MetLife to Provide Annuity Benefits to Approximately 20,000 Lockheed Martin Retirees and Beneficiaries
January 28 2020 - 12:50PM
Business Wire
~ Pension Risk Transfer agreement covers
approximately $1.9 billion in pension obligations ~
MetLife, Inc. (MetLife) announced today that it has entered into
an agreement with Lockheed Martin Corporation (NYSE: LMT) to
provide annuity benefits through its subsidiary, Metropolitan Tower
Life Insurance Company, to approximately 20,000 retirees and
beneficiaries in Lockheed Martin’s defined benefit (DB) pension
plans, representing pension obligations of approximately $1.9
billion.
“We are pleased to have been selected to provide guaranteed
lifetime income to Lockheed Martin’s retirees, including benefits
to the retirees' spouses and beneficiaries,” said Graham Cox,
executive vice president and head of Retirement & Income
Solutions at MetLife. “MetLife’s long history and expertise in this
market gives our clients confidence that retiree benefits are
well-protected and risks are well-managed.”
Lockheed Martin, through its master retirement trust, purchased
a group annuity contract from Metropolitan Tower Life Insurance
Company in December 2019. The transaction will not change the
amount of the monthly pension benefit received by the corporation’s
retirees and beneficiaries. Metropolitan Tower Life Insurance
Company, rather than Lockheed Martin, will be responsible for
making these monthly payments. No action is needed by retirees or
beneficiaries. Lockheed Martin and MetLife will provide details to
retired participants and beneficiaries whose ongoing payments will
be made by Metropolitan Tower Life Insurance Company.
“This agreement will allow Lockheed Martin to focus on its core
mission and mitigate financial risk associated with market
volatility, while leveraging MetLife’s expertise managing
transferred pension liabilities to ensure a seamless transition for
retirees and beneficiaries included in the transaction,” said Ken
Possenriede, executive vice president and chief financial officer
of Lockheed Martin.
2020 is likely to be another robust year for pension risk
transfer (PRT). MetLife’s 2019 Pension Risk Transfer Poll projects
that the market will continue to grow at a healthy pace. More than
three-quarters (76 percent) of DB plan sponsors with de-risking
goals intend to completely divest all of their company’s DB plan
liabilities at some point in the future, and 33 percent intend to
do so in the next five years.
MetLife, through its subsidiaries, Metropolitan Life Insurance
Company and Metropolitan Tower Life Insurance Company, is a market
leader in the pension risk transfer industry, managing benefit
payments of more than $2 billion a year for more than 700,000
annuitants. Overall, MetLife was responsible for $47 billion of
transferred pension liabilities as of Sept. 30, 2019 and has been
in the pension business for nearly 100 years, having issued its
first group annuity contract in 1921 to fund a defined benefit
plan.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global
security and aerospace company that employs approximately 110,000
people worldwide and is principally engaged in the research,
design, development, manufacture, integration and sustainment of
advanced technology systems, products and services.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (“MetLife”), is one of the world’s leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help its individual and
institutional customers navigate their changing world. Founded in
1868, MetLife has operations in more than 40 markets globally and
holds leading positions in the United States, Japan, Latin America,
Asia, Europe and the Middle East. For more information, visit
www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, such as
“likely to be,” “projects,” and “intend to,” are based on
assumptions and expectations that involve risks and uncertainties,
including the “Risk Factors” MetLife, Inc. describes in its U.S.
Securities and Exchange Commission filings. MetLife’s future
results could differ, and it has no obligation to correct or update
any of these statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200128005701/en/
Judi Mahaney 212-578-7977 jmahaney@metlife.com
MetLife (NYSE:MET)
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