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The Markets December 4, 2018
Bristol-Myers Squibb to Terminate $3.8 Billion Pension
It will offer lump sums to participants and transfer the remaining money to a group annuity contract from Athene Annuity and Life.
Reported by Lee Barney
Bristol-Myers Squibb Company will transfer $3.8 billion of U.S. pension obligations through a full termination of its plan. The obligations will be distributed through a combination of lump sum payments to those participants who elect them, with the remaining money being used to purchase a group annuity contract from Athene Annuity and Life Company.
The company froze its pension plan in 2009, and since then, has continued to de-risk the plan. Bristol-Myers Squibb says the latest action will reduce its future risk and administrative costs while entrusting its funds to a highly rated financial institution.
There are 4,800 active participants in the plan, 1,400 retirees and their beneficiaries receiving benefits and 18,000 prior Bristol-Myers Squibb employees who have not yet initiated their benefits.
The plan will terminate on February 1, 2019, lump sums will be distributed the following July and the transfer to Athene is expected to occur in August.