August 20, 2015 – The Lincoln Electric Company, a subsidiary of Lincoln Electric Holdings, Inc., has entered into an agreement to purchase a group annuity contract from The Principal Financial Group to settle $425 million of Lincoln Electric’s approximate $900 million in outstanding U.S. pension obligations.
Under the agreement, The Principal will assume the obligation to pay future pension benefits starting November 1, 2015, for specified U.S. retirees and surviving beneficiaries who retired on or before June 1, 2015 and are currently receiving payments from Lincoln Electric’s U.S. Retirement Annuity Program (RAP).
Lincoln Electric says it has been committed to meeting its pension obligation responsibly, and it has contributed $375 million to its pension plans over the last ten years. Its U.S. pension plans are fully funded.
Click on the external link below to review the entire article: