MetLife and Principal to Provide Annuity Benefits to Philips North America, LLC Retirement Participants
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~ Pension risk transfer agreement provides guaranteed lifetime income for approximately 11,000 retirees, beneficiaries and deferred participants ~
NEW YORK--(BUSINESS WIRE)-- Principal Financial Group® and Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc. (“MetLife”), announced today they entered into an agreement with Philips North America LLC (“Philips”) to transfer approximately $1.2 billion of Philips North America Pension Plan obligations to Principal Financial Group® (“Principal”) and MetLife. The agreement, which was signed in the fourth quarter of 2020, provides guaranteed retirement income solutions for approximately 11,000 retirees, beneficiaries and deferred participants in the Philips North America Pension Plan.
“MetLife is pleased Philips entrusted us, along with Principal®, to provide guaranteed lifetime income to the company’s retirement participants,” said Graham Cox, executive vice president and head of Retirement & Income Solutions at MetLife. “Our expertise at managing longevity and market risk gives pension plan sponsors confidence that their retirees will be well protected, while also allowing Philips to focus on its core business.”
MetLife will act as the lead administrator for the monthly benefits for approximately 9,000 retirees and their beneficiaries in the Philips North America Pension Plan. Principal will have financial responsibility for a portion of these monthly benefits and will settle such obligations directly with MetLife. Principal will have sole responsibility for the approximately 2,000 deferred participants.
The combination of Principal and MetLife’s respective financial strength, retirement expertise and administrative leadership allows Philips to promote long-term security and confidence for its approximately 11,000 retirees, beneficiaries and deferred participants. MetLife and Principal have industry leading capabilities in pension risk transfer (PRT) and created a unique solution that met the needs of Philips. The transaction will not change the amount of monthly pension benefits received by the Philips’ pension plan participants and participants will continue to receive a single payment each month. MetLife and Principal, rather than Philips, will be responsible for making these monthly payments.
“We applaud Philips for selecting an approach that promotes financial security for their participants,” said Joe McCarty, vice president, Retirement and Income Solutions at Principal. “As a leader in the pension risk transfer market, we look forward to bringing our technology and capabilities to the table, including benefit administration services, to serve the complex needs of participants and help them embark on retirement with confidence.”
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
The forward-looking statements in this news release, such as “will,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it has no obligation to correct or update any of these statements.
Guarantees are based upon the claims-paying ability of the issuing insurance company.
© 2021 MetLife Services and Solutions, LLC. Group annuity contracts can be issued by Metropolitan Life Insurance Company, 200 Park Ave., NY, NY 10166 or Metropolitan Tower Life Insurance Company, 5601 South 59th St., Lincoln, NE 68516. Like most group annuity contracts, MetLife group annuities contain certain limitations, exclusions and terms for keeping them in force.
©2021 Principal Financial Services, Inc. Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-247-1737, member SIPC and/or independent broker/-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
Source: MetLife, Inc.
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