MetLife (MET) Assumes Post-Retirement Life Insurance Liabilities For 8,000 Avaya Retirees
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MetLife, Inc. (NYSE: MET) announced today that its subsidiary, Metropolitan Life Insurance Company, entered into an agreement in the first quarter of 2021 to assume responsibility for about $190 million of Avaya’s post-retirement life insurance obligations covering approximately 8,000 retirees.
Using existing plan assets, Avaya, through its Post Retirement Life Insurance Benefits Trusts, purchased retiree life insurance buyout contracts from Metropolitan Life Insurance Company to cover eligible retirees. The buyout transaction will not change life insurance benefits for Avaya’s retirees and their beneficiaries. With the transaction, Metropolitan Life Insurance Company, rather than Avaya, will be responsible for life insurance costs, benefit payments and recordkeeping. No action is needed by retirees or beneficiaries. Avaya and MetLife have provided additional information to covered retirees whose benefits will be paid by Metropolitan Life Insurance Company.
“With this transaction, we look forward to continuing our long-term relationship with Avaya and providing security to their retirees,” said Jay Wang, senior vice president and head of Risk Solutions for MetLife’s Retirement & Income Solutions business. “MetLife is a leader in providing retiree life insurance funding and buyout solutions. By taking on these retiree life insurance obligations, we will help Avaya reduce its financial liabilities while securing these benefits for retirees and beneficiaries.”
MetLife, through its subsidiary Metropolitan Life Insurance Company, has been providing retiree life insurance funding solutions for more than 60 years and is a market leader for post-retirement and welfare benefits’ solutions.
Avaya was advised on the deal by SageView Advisory Group.
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