MetLife Signs Pension Buyout Agreement with PPG
Metropolitan Life Insurance Company (MetLife) has announced today that PPG has entered into an agreement with both MetLife and
Massachusetts Mutual Life Insurance Company (MassMutual) to provide annuity benefits to approximately 13,400 retirees in PPG’s
defined benefit (DB) pension plans, representing pension obligations of $1.6 billion.
“MetLife is pleased to be working with PPG to remove the risks and liabilities associated with its pension plans,” says Wayne
Daniel, Senior Vice President, U.S. Pensions, MetLife. “As a market leader with 90+ years of experience and $38 billion of
transferred pension liabilities, MetLife can provide PPG with the security and knowledge that their risks are well-managed and
their participants’ benefits are protected.”
The transaction involves two groups of retirees – salaried and non-union hourly. For 11,000 salaried retirees, MetLife and
MassMutual are each providing 50 percent of the monthly benefits. MassMutual will act as lead administrator. MetLife will pay its
portion of the benefits through an administration agreement with MassMutual. MetLife will be the exclusive provider for the
non-union hourly group, making payments directly to the retirees.
The transaction, subject to certain conditions, is expected to close later in 2016. It will be executed with a combination of
cash and assets-in-kind. PPG will purchase group annuity contracts from MetLife and MassMutual. The insurance companies will assume
responsibility for making benefit payments to the retirees or their survivors covered by the agreement. The transaction will not
change the amount of the monthly benefit received by the affected parties. MetLife and MassMutual, rather than PPG, will be
responsible for making these monthly payments following the close of the transaction; no action is needed by the plan
participants.
About MetLife
MetLife, Inc. (NYSE:MET), through its subsidiaries and affiliates (“MetLife”), is one of the largest life insurance companies in
the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management.
Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in
the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted
for more than 130 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to
find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net
sales of $15.3 billion in 2015. We serve customers in construction, consumer products, industrial and transportation markets and
aftermarkets. To learn more, visit www.ppg.com.
MetLife, Inc.
Judi Mahaney, 212-578-7977
jmahaney@metlife.com
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