Alcoa Purchases Group Annuity Contracts for Certain U.S. Pension Plans
November 17 2021 - 07:31AM
Business Wire
Alcoa Corporation (NYSE: AA) today 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 United
States retirees and beneficiaries.
The transfer, which will be complete later this month, will
further enhance Alcoa’s strong balance sheet, reduce the risk from
volatility in pension plan obligations, and continue to meet
commitments to retirees and beneficiaries.
The group annuity contracts will be executed by two subsidiaries
of Athene Holding, Ltd. (NYSE: ATH). Athene will assume payments
for approximately 11,200 participants in the U.S. pension plans.
Participants will not have any change in their benefits, and Athene
will take over payment obligations in December of 2021.
Athene, through its subsidiaries, is a leading retirement
services company with total assets of $224.4 billion as of
September 30, 2021. With operations in the United States, Bermuda
and Canada, Athene specializes in helping its customers achieve
financial security and is a solutions provider to institutions.
Athene’s principal insurance company subsidiaries have an “A”
rating from A.M. Best and Fitch Ratings and an “A+” from Standard
and Poor’s Global Ratings.
In the fourth quarter of 2021, Alcoa expects to record a
non-cash settlement charge of approximately $565 million (pre- and
after-tax), or $2.96 per share related to the annuity
transaction.
The Company’s remaining U.S. defined benefit pension plans are
expected to be greater than 95 percent funded after the transfer is
complete.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back 135 years to the
world-changing discovery that made aluminum an affordable and vital
part of modern life. Since developing the aluminum industry, and
throughout our history, our talented Alcoans have followed on with
breakthrough innovations and best practices that have led to
efficiency, safety, sustainability, and stronger communities
wherever we operate.
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expectations, assumptions or projections about the future, other
than statements of historical fact, are forward-looking statements.
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and are subject to known and unknown risks, uncertainties, and
changes in circumstances that are difficult to predict. Although
Alcoa Corporation believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Additional information concerning factors
that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
law.
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Investor Contact James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contact Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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