AT&T Inc., Dallas, announced an agreement to purchase group annuity contracts from two Athene Holding subsidiaries to transfer $8.1 billion in U.S. pension plan liabilities.
The company is completing the purchase, which is expected to close Wednesday, from Athene Annuity & Life Co. and Athene Annuity & Life Assurance Co. of New York, according to a 10-Q filing with the SEC on Monday.
AT&T is purchasing the contracts with plan assets and will not be required to make any further contributions to the plan. In August, the insurers will take on the responsibility for paying benefits to about 96,000 AT&T participants and beneficiaries, according to the filing.
As of Dec. 31, AT&T had $40.87 billion in U.S. pension plan assets, and $42.83 billion in projected benefit obligations, for a funding ratio of 95.4%, according to its most recent 10-K filing.
AT&T officials could not be immediately reached for further information