The FINANCIAL — Bristol-Myers Squibb Company announced it will transfer $3.8 billion of U.S. pension obligations through a full termination of its U.S. Retirement Income Plan.
The obligations will be distributed through a combination of lump sums to Plan participants who elect such payments, and the purchase of a group annuity contract from Athene Annuity and Life Company, a wholly-owned insurance subsidiary of Athene Holding, Ltd, for all remaining liabilities.
This transaction continues the Company’s pension de-risking strategy and actions, which began with the freezing of the Company’s U.S. Plan in 2009. This transaction reduces Bristol-Myers Squibb’s future risk and administrative costs while entrusting the pensions of Plan participants and their beneficiaries to a highly rated financial institution with expertise in the long-term management of retirement benefits.
The Plan includes approximately 4,800 active employees, 1,400 retirees and their beneficiaries receiving benefits, and 18,000 prior Bristol-Myers Squibb employees who have not yet initiated their benefits. Current Plan provisions, benefit payment options and in-pay benefits will remain available for all participants. Plan participants have received information packages with further details.