TRW In Pension Buyout Deal With MetLife

(RTTNews) - Insurer MetLife Inc (MET) said on Tuesday it has signed an agreement with TRW, a subsidiary of TRW Automotive Holdings Corp (TRW), for MetLife to provide pension benefits to 7,045 retirees and current beneficiaries in TRW's defined benefit plan in a $440 million transaction.

This transaction follows TRW's announcement last month that the company had entered into a partial buy-out agreement with Legal & General Assurance Society related to £2.5 billion ($3.9 billion) of their U.K. pension scheme. Both transactions are part of TRW's overall plan to reduce its pension liabilities in the U.K., U.S. and Canada.

For this U.S. transaction, TRW purchased a group annuity contract from MetLife; as a result, the insurance company will take over pension payments to the retirees and beneficiaries covered by the agreement.