MetLife, Inc. announced today that its subsidiary, Metropolitan Tower Life Insurance Company, has entered into an agreement with Weyerhaeuser Company (Weyerhaeuser) to provide annuity benefits to nearly 5,200 retirees and beneficiaries in Weyerhaeuser’s defined benefit (DB) pension plan, representing pension obligations of approximately $765 million.

“We are pleased to have been selected to provide guaranteed lifetime income to these Weyerhaeuser retirees and beneficiaries,” says Graham Cox, executive vice president and head of Retirement & Income Solutions at MetLife. “In 2021, MetLife is celebrating its 100 th year offering group annuity contracts; our expertise in managing transferred pension liabilities allows our clients to reduce the risk associated with managing their pension plan and know their participants’ benefits are protected.” Weyerhaeuser’s group annuity contract purchase from Metropolitan Tower Life Insurance Company closed in December 2020.

The transaction will not change the amount of the monthly pension benefit received by Weyerhaeuser’s retirees and beneficiaries. No action is needed by retirees or beneficiaries. Weyerhaeuser and MetLife will provide details to those Weyerhaeuser retired participants and beneficiaries whose ongoing payments will be made by Metropolitan Tower Life Insurance Company.

“This pension risk transfer agreement allows Weyerhaeuser to focus on its core mission and lessen our plan’s exposure to market volatility, while knowing that MetLife’s expertise in guaranteed lifetime income ensures a seamless transition for transferred retirees and beneficiaries,” said Russell Hagen, senior vice president and chief financial officer of Weyerhaeuser.

Plan sponsors are looking to pursue pension risk transfer transactions sooner rather than later. MetLife’s 2020 Pension Risk Transfer Poll found that among plan sponsors interested in a buyout, the majority (81%) said they would transact within five years, including 24% who said they would secure a buyout within two years.

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