FedEx Corp. is transferring $6 billion in U.S. pension obligations to MetLife Inc.
The deal covers the pension benefits of 41,000 retirees and beneficiaries who currently receive a monthly payout and meet certain conditions, the courier said in a statement Tuesday. Benefits won't change, FedEx said, without disclosing the cost of the transaction.
Employers have been stepping up efforts to shed pension risks as it's become increasingly expensive to offer such retirement plans, given low interest rates and higher fees paid to a government agency that backstops benefits. Prudential Financial Inc. has taken on obligations from companies including General Motors Co. and Verizon Communications Inc.
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FedEx's transaction with MetLife is expected to close May 10. FedEx was unchanged at $241.95 after the close of regular trading in New York. MetLife was unchanged at $46.55.
From: Bloomberg
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