Alcoa Announces Transfer Of Approx. $1 Bln Of Pension Obligations - Quick Facts

(RTTNews) - Alcoa Corporation (AA) announced the purchase of group annuity contracts that will facilitate the transfer of approximately $1 billion of pension obligations and assets associated with defined benefit pension plans for certain retirees and beneficiaries. The contracts will be executed by two subsidiaries of Athene Holding, Ltd. (ATH). Athene will assume payments for approximately 11,200 participants in the U.S. pension plans.

Alcoa noted that the company's remaining U.S. defined benefit pension plans are expected to be greater than 95 percent funded after the transfer is complete.

In the fourth quarter, Alcoa estimates to record a non-cash settlement charge of approximately $565 million or $2.96 per share related to the annuity deal.