Alcoa Transfers Pension Assets, Cuts Life Insurance

Metal manufacturer Alcoa Corp. will transfer $290 million in pension assets and obligations to an insurer and cut retiree life insurance, the company announced Aug. 8.

The Pittsburgh-based company said the move was an effort to further reduce its pension and other post employment benefit liabilities, which totaled $2.7 billion in June.

The assets for approximately 10,500 participants of the pension plan will be transferred to Athene Annuity and Life Co., and payments will begin in October, the company said. Alcoa contributed an additional $100 million to its pension to further fund it before the transfer to Athene.

Alcoa is also cutting life insurance for its retirees on Sept. 1. It will make a one-time payment to each affected retiree, costing the company $25 million.

The decisions will reduce Alcoa’s liability for its pension and other post employment benefits by $175 million, the company said.