Life insurer MetLife has entered into an agreement with Lockheed Martin to provide annuity benefits to approximately 20,000 members of its defined benefit pension plan, representing obligations of around $1.9 billion.
Lockheed Martin purchased a group annuity contract via its master retirement trust from MetLife subsidiary 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, rather than Lockheed Martin, will be responsible for making these monthly payments.
Lockheed Martin and MetLife will provide details to retired participants and beneficiaries whose ongoing payments will be made by Metropolitan Tower Life Insurance Company.
“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.
Overall, MetLife was responsible for $47 billion of transferred pension liabilities as of September 2019.
Ken Possenriede, executive vice president and chief financial officer of Lockheed Martin, added, “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.”