MetLife and Principal to Provide Annuity Benefits to Philips North America, LLC Retirement Participants
February 23 2021 - 12:30PM
Business Wire
~ Pension risk transfer agreement provides
guaranteed lifetime income for approximately 11,000 retirees,
beneficiaries and deferred participants ~
Principal Financial Group® and Metropolitan Tower Life Insurance
Company, a subsidiary of MetLife, Inc. (“MetLife”), announced today
they entered into an agreement with Philips North America LLC
(“Philips”) to transfer approximately $1.2 billion of Philips North
America Pension Plan obligations to Principal Financial Group®
(“Principal”) and MetLife. The agreement, which was signed in the
fourth quarter of 2020, provides guaranteed retirement income
solutions for approximately 11,000 retirees, beneficiaries and
deferred participants in the Philips North America Pension
Plan.
“MetLife is pleased Philips entrusted us, along with Principal®,
to provide guaranteed lifetime income to the company’s retirement
participants,” said Graham Cox, executive vice president and head
of Retirement & Income Solutions at MetLife. “Our expertise at
managing longevity and market risk gives pension plan sponsors
confidence that their retirees will be well protected, while also
allowing Philips to focus on its core business.”
MetLife will act as the lead administrator for the monthly
benefits for approximately 9,000 retirees and their beneficiaries
in the Philips North America Pension Plan. Principal will have
financial responsibility for a portion of these monthly benefits
and will settle such obligations directly with MetLife. Principal
will have sole responsibility for the approximately 2,000 deferred
participants.
The combination of Principal and MetLife’s respective financial
strength, retirement expertise and administrative leadership allows
Philips to promote long-term security and confidence for its
approximately 11,000 retirees, beneficiaries and deferred
participants. MetLife and Principal have industry leading
capabilities in pension risk transfer (PRT) and created a unique
solution that met the needs of Philips. The transaction will not
change the amount of monthly pension benefits received by the
Philips’ pension plan participants and participants will continue
to receive a single payment each month. MetLife and Principal,
rather than Philips, will be responsible for making these monthly
payments.
“We applaud Philips for selecting an approach that promotes
financial security for their participants,” said Joe McCarty, vice
president, Retirement and Income Solutions at Principal. “As a
leader in the pension risk transfer market, we look forward to
bringing our technology and capabilities to the table, including
benefit administration services, to serve the complex needs of
participants and help them embark on retirement with
confidence.”
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 Principal®
Principal helps people and companies around the world build,
protect and advance their financial well-being through retirement,
insurance and asset management solutions that fit their lives. Our
employees are passionate about helping clients of all income and
portfolio sizes achieve their goals – offering innovative ideas,
investment expertise and real-life solutions to make financial
progress possible. To find out more, visit us at principal.com.
Forward-Looking Statements
The forward-looking statements in this news release, such as
“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.
Guarantees are based upon the claims-paying ability of the
issuing insurance company.
© 2021 MetLife Services and Solutions, LLC. Group annuity
contracts can be issued by Metropolitan Life Insurance Company, 200
Park Ave., NY, NY 10166 or Metropolitan Tower Life Insurance
Company, 5601 South 59th St., Lincoln, NE 68516. Like most group
annuity contracts, MetLife group annuities contain certain
limitations, exclusions and terms for keeping them in force.
©2021 Principal Financial Services, Inc. Insurance products
issued by Principal National Life Insurance Co (except in NY) and
Principal Life Insurance Co. Plan administrative services offered
by Principal Life. Principal Funds, Inc. is distributed by
Principal Funds Distributor, Inc. Securities offered through
Principal Securities, Inc., 800-247-1737, member SIPC and/or
independent broker/-dealers. Referenced companies are members of
the Principal Financial Group®, Des Moines, IA 50392.
1454143-122020
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version on businesswire.com: https://www.businesswire.com/news/home/20210223005917/en/
Judi Mahaney 212-578-7977 jmahaney@metlife.com Lonnetta Ragland
515-878-1504 Ragland.Lonnetta@principal.com
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