01—Abstract
Summary
Summary of the 8-K filed October 18, 2023. Cited figures are marked; the original filing is the authoritative source.
ATI Inc. has announced a significant move to de-risk its balance sheet by purchasing group annuity contracts to transfer approximately 85%a of its U.S. qualified defined benefit pension plan obligations and associated assets.
This transaction, effective October 18, 2023, involves Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York as the counterparties. Importantly, the pension benefits for affected participants and their beneficiaries will remain unchanged, ensuring continuity for retirees and current employees covered by these plans.
02—Key points
Key Highlights
- ATI Inc. is transferring 85% of its U.S. qualified defined benefit pension plan obligations.
- Group annuity contracts are being used to facilitate the transfer.
- Associated pension plan assets will also be transferred.
- Athene Annuity and Life Company and its New York subsidiary are the counterparties.
- Pension benefits for participants and beneficiaries will not change.
- This action represents a de-risking strategy for ATI Inc.
03—Questions
Frequently Asked Questions
What is ATI Inc. doing with its pension plan obligations?
ATI Inc. is transferring approximately 85% of its U.S. qualified defined benefit pension plan obligations and related assets to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York through group annuity contracts.
Will the pension benefits for participants change as a result of this transaction?
No, the ATI pension benefits to which participants and their beneficiaries are entitled will not change as a result of this transaction. The annuity contracts ensure continuity of benefits.
What is the financial impact of this transaction on ATI Inc.?
While not explicitly detailed in this 8-K, this transaction is generally considered a de-risking strategy. It removes a significant portion of the pension liabilities and associated investment risk from ATI's balance sheet, potentially improving financial flexibility and reducing future volatility.
Who is Athene Annuity and Life Company?
Athene Annuity and Life Company and its New York subsidiary are financial institutions that specialize in providing annuity products, including those used for pension plan risk transfers.
04—Continue