SPX Corp. based in Charlotte, NC, has entered into an annuity buyout contract with MassMutual covering about 16,000 retirees. SPX plans to offer a lump-sum option to 7,500 vested former employees.
MassMutual is expected to take over about $625 million in pension payments in April 2014. The pension fund has about $1.2 billion in assets and is more than fully funded. SPX made a $250 million voluntary contribution in the first quarter this year to put the plan in position to pursue an annuity buyout.
The transaction is not expected to require any additional funding.
For more information about MassMutual, visit their NAPA Partner Corner page here.
