The Markets April 24, 2019
Avery Dennison Transferring $750M in Pension Obligations to AIG
The agreement covers 8,500 retirees, beneficiaries and deferred and active members.
Reported by Lee Barney
Avery Dennison Corporation has signed an agreement to transfer $750 million in pension obligations to American General Life Insurance Company, part of AIG’s life and retirement business. The deal covers 8,500 retirees, beneficiaries and deferred and active members.
Avery Dennison is conducting the pension risk transfer by purchasing AIG annuities, with AIG assuming the future annuity payments to the 8,500 in Avery Dennison’s plan, commencing April 1. This settlement resulted in $447 million of pretax charges, partially offset by related tax benefits of $180 million.“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,” says Ali Vaseghi, chief operating officer, institutional markets.
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