American International Group, Inc. (NYSE: AIG) announced that Avery Dennison Corporation, a global materials science company specializing in the design and manufacture of a wide variety of labeling and functional materials, has signed an agreement transferring approximately $750 million of pension obligations to American General Life Insurance Company, part of AIG’s Life & Retirement business.
Image: The AIG Towers of Los Angeles. Photo: courtesy of HanSangYoon/ Wikipedia.
The agreement covers approximately 8,500 retirees, beneficiaries, and deferred and active members.
“We are pleased Avery Dennison selected AIG to manage the retirement security of its retirees, and we are committed to providing them with a smooth transition,” said Ali Vaseghi, Chief Operating Officer – Institutional Markets and leader of the Pension Risk Transfer business. “AIG established its Pension Risk Transfer business over 35 years ago and serves as a trusted partner to plan sponsors as they navigate the complex plan termination process.”
Pension risk transfer transactions represent a solution for companies wanting to safeguard the retirement commitments made to their current and former employees, while minimizing the risks and demands connected with managing these benefits. Through the pension risk transfer market, companies can purchase a group annuity contract to transfer some or all of their retirement liabilities to a life insurance company. These insurance solutions provide an additional risk management tool for the company while maintaining the retirement security of their employees.
Source: Company Press Release