MetLife to Provide Annuity Benefits to 13,500 Lockheed Martin Retirees and Beneficiaries
January 26 2021 - 1:02PM
Business Wire
~ Pension Risk Transfer agreement covers
approximately $1.4 billion in pension obligations ~
MetLife, Inc. announced today that its subsidiary, Metropolitan
Tower Life Insurance Company, has entered into an agreement with
Lockheed Martin Corporation (NYSE: LMT) to provide annuity benefits
to approximately 13,500 retirees and beneficiaries in Lockheed
Martin’s defined benefit (DB) pension plans, representing pension
obligations of approximately $1.4 billion.
Lockheed Martin, through its master retirement trust, purchased
a group annuity contract from Metropolitan Tower Life Insurance
Company in December 2020. The transaction will not change the
amount or timing 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 is
the second pension risk transfer transaction Lockheed Martin has
signed with MetLife. In 2019, MetLife assumed approximately $1.9
billion in pension obligations for approximately 20,000 of the
company’s retirees and their beneficiaries.
“With this transaction we are looking forward to continuing our
work with Lockheed Martin to provide guaranteed lifetime income for
their retirees as well as benefits to the retirees’ spouses and
beneficiaries,” said Graham Cox, executive vice president and head
of Retirement & Income Solutions at MetLife. “MetLife is a
leading pension risk transfer (PRT) provider. By taking on these
pension obligations, we will help Lockheed Martin provide its
retirees and beneficiaries with financial security.”
The PRT market rebounded in the second half of 2020 and MetLife
expects to see this trend continue in 2021. MetLife’s 2020 Pension
Risk Transfer Poll found that while most plan sponsors reported
that their companies have been broadly impacted by COVID-19, 81%
said the pandemic would neither decrease the likelihood of
transacting nor cause a delay in transacting.
MetLife, through Metropolitan Life Insurance Company and
Metropolitan Tower Life Insurance Company, is a market leader in
the pension risk transfer industry, managing benefit payments of
approximately $3 billion a year for about 720,000 annuitants.
Metropolitan Life Insurance Company issued its first group annuity
contract in 1921 to fund a defined benefit plan. MetLife’s
Retirement & Income Solutions Customer Solutions Center team
has been recognized by J.D. Power for providing "An Outstanding
Customer Service Experience" for the Live Phone Channel. MetLife's
Retirement & Income Solutions (RIS) business includes U.S.
Pensions, Institutional Income Annuities, and Structured
Settlements in addition to other institutional products.
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.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global
security and aerospace company that employs approximately 114,000
people worldwide and is principally engaged in the research,
design, development, manufacturing, integration and sustainment of
advanced technology systems, products and services.
Forward-Looking Statements
The forward-looking statements in this news release, such as
“looking forward” and “will,” 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/20210126005949/en/
MetLife Contact: Judi Mahaney jmahaney@metlife.com
212-578-7977
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