AK Steel Corp. Transfers Millions in Pension Liabilities

On October 26, 2018, AK Steel Corporation of West Chester, Ohio, purchased a group annuity contract from Massachusetts Mutual Life Insurance Company in a move that will affect about 5,400 retirees. The transaction will transfer some $280 million in pension liabilities. This is the third such derisking transaction for AK Steel; the company purchased two other group annuity contracts from an unnamed insurance company in 2016 to transfer $210 million in pension liabilities. As of December 31, the company’s pension plan assets totaled $2.322 billion, while estimated benefit obligations totaled $2.808 billion, for a funding ratio of 82.7%. For more information on the risks associated with pension de-risking contact Edward Stone at eddie@edwardstonelaw.com.