Voya Retirement Insurance and Annuity Company has an agreement to provide pension payments to approximately 5,000 retirees and beneficiaries currently covered under the Chemtura Corp. Retirement Plan.
The transaction, known as a pension risk transfer arrangement, will enable Chemtura to "better manage its pension obligations by shifting the responsibility for these payments over to Voya," Voya Financial said in a news release.
In exchange for Voya taking on this financial obligation, Chemtura will purchase a group annuity contract representing approximately $350 million in premiums to be paid to Voya. Beginning May 1, Voya will start making the pension payments to retirees and beneficiaries of the plan.
Individuals will continue to receive their same monthly benefits. They will experience no other changes except that the payments will come from Voya instead of Chemtura.
“We are pleased that Chemtura has placed its trust in Voya to help support the thousands of retirees and pension plan beneficiaries who rely on these important benefits for their retirement income,” said Rick Mason, president of small/mid corporate and institutional investment markets at Voya.
“As the retirement landscape continues to evolve, many employers with traditional defined benefit plans are looking to reduce the uncertainty associated with managing these programs. With our established administrative and investment capabilities and a long history of serving institutions and individuals with retirement solutions, Voya is well positioned to support the expanding pension risk transfer market.”
The announcement caps off an active year for Voya in the PRT market. Noteworthy transactions include one in excess of $500 million in premiums for Voya. With the increase in defined benefit plan de-risking activities, Voya views the pension risk transfer market as having natural synergies with its various businesses, the release said.
As one of the largest workplace retirement plan providers in the country, clients can benefit from Voya’s "industry-leading administrative platform and its world-class call center capabilities," the release added. Voya is currently focused on pension risk transfer opportunities to help small and mid-sized employers and their workforces.