MetLife to provide pension benefits to FedEx retirees and beneficiaries.
Global Banking News-May 9, 2018--MetLife to provide pension benefits to FedEx retirees and beneficiaries
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Global Banking News - 09 May 2018
Metropolitan Life Insurance Company (MetLife) (NYSE: MET) has said that it has entered into an agreement with FedEx Corporation to provide annuity benefits to nearly 41,000 retirees and beneficiaries in the FedEx defined benefit pension plans, which represents pension obligations of nearly USD6bn.
Subject to certain conditions, this transaction is expected to close on May 10, 2018. It will be executed by a combination of cash and assets of the Pension Plans. As part of the transaction, FedEx will purchase a group annuity contract from Metropolitan Life and the insurance company will assume responsibility for making benefit payments to the retirees or their beneficiaries covered by the agreement.
According to MetLife's 2017 Pension Risk Transfer poll, 57.0 percent of plan sponsors are interested in annuity buyouts for their defined benefit plans. Among those interested, 77.0 percent said they are likely to do so in the next two years. The transaction will not change the amount of the monthly benefit for any annuitant. Metropolitan Life will be responsible for making these monthly payments following the close of the transaction.
Through its subsidiaries and affiliates, MetLife, Inc. (NYSE:MET) is a financial services company, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers. MetLife has operations in more than 40 countries. In the pension risk transfer industry, Metropolitan Life manages pension payments for more than 600,000 annuitants.
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|Publication:||Global Banking News (GBN)|
|Date:||May 9, 2018|
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