Alcoa Announces Pension Annuity Transaction; To Record Non-cash Settlement Charge In Q3

(RTTNews) - Alcoa Corporation (AA) announced the purchase of group annuity contracts that will facilitate the transfer of approximately $1 billion of pension obligations and assets associated with defined benefit pension plans for certain United States retirees and beneficiaries. The group annuity contracts will be executed by two subsidiaries of Athene Holding Ltd. Athene will assume payments for approximately 4,400 participants in the U.S. pension plans.

In the third quarter, Alcoa expects to record a non-cash settlement charge of approximately $635 million or $3.41 per share, related to the annuity transaction.