United States Steel Corporation announced it has purchased group annuity contracts from Banner Life Insurance Company and William Penn Life Insurance Company of New York to transfer approximately $284 million of the Company’s pension plan obligations to Legal & General. The purchase of the group annuity contracts will be funded directly by the assets of the pension plan.
“Legal & General was carefully selected by an independent fiduciary as a highly rated and experienced retirement benefits provider to ensure our retirees’ benefits are secured and maintained, a continued priority of our Best for All℠ strategy”
“Legal & General was carefully selected by an independent fiduciary as a highly rated and experienced retirement benefits provider to ensure our retirees’ benefits are secured and maintained, a continued priority of our Best for All℠ strategy,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “This transaction is yet another meaningful step in strengthening the Company’s balance sheet and further de-risking our pension plan, a plan that remains more than 100% funded and is an important source of differentiation versus some peers in the steel industry.”
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The purchase results in the transfer of administrative and benefit-paying responsibilities for approximately 17,800 U.S. retirees and beneficiaries to Legal & General. Legal & General will begin paying benefits for certain retirees and beneficiaries in the United States Steel Corporation Plan for Employee Pension Benefits (Revision of 2003) on January 1, 2022. There will be no change to the pension benefits for any retirees and beneficiaries as a result of the transaction. Details will be provided to retirees and beneficiaries whose continuing payments will be fulfilled by Legal & General.
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