3M agrees To Transfer ~$2.5B Of Its Defined Benefit Pension Obligations And Related Plan Assets For 23,000 US Retirees And Beneficiaries To Met Tower Life
Portfolio Pulse from Benzinga Newsdesk
3M has agreed to transfer approximately $2.5 billion of its defined benefit pension obligations and related plan assets for 23,000 US retirees and beneficiaries to Met Tower Life. This transfer represents about 60% of ERIP retiree participants and will be effective from October 1, 2024. The transaction was funded using assets from 3M's ERIP trust without requiring additional contributions.
June 13, 2024 | 10:31 am
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3M has transferred $2.5 billion of its pension obligations to Met Tower Life, covering 23,000 US retirees. This move, effective October 1, 2024, was funded using existing ERIP trust assets without additional contributions.
The transfer of $2.5 billion in pension obligations to Met Tower Life reduces 3M's long-term liabilities and financial risk. This move is likely to be viewed positively by investors as it improves the company's balance sheet without requiring additional funding.
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