Another firm makes pension risk transfer arrangement

Photo: AP

Chemtura Corporation has become the latest company to follow the trend — transferring its pension liabilities to a third party.

Chemtura reached an agreement with Voya Retirement Insurance and Annuity Company to provide pension payments to approximately 5,000 retirees and beneficiaries currently covered under the Chemtura Corporation Retirement Plan. The transaction, known as a pension risk transfer arrangement, will shift the responsibility for Chemtura’s pension obligations over to Voya. In exchange for Voya taking on its financial obligation, Chemtura will purchase a group annuity contract representing approximately $350 million in premiums to be paid to Voya.