Lincoln Electric Announces Group Annuity Contract for Pensioners
Lincoln Electric Co., manufacturer of welding products and a subsidiary of Lincoln Electric Holdings Inc., announced on August 19 that it would be purchasing a group annuity contract in order to reduce the company's pension obligations for outstanding payments.
The announcement stated that Lincoln Electric is purchasing the group annuity contract from Principal Financial Group in order to settle $425 million worth of outstanding U.S. pension payments to former employees. According to Crain's Cleveland Business and Pensions and Investments, Lincoln Electric currently owes about $900 million to 1,900 U.S. retirees and beneficiaries who retired on or before June 1, 2015.
The company has already paid $375 million toward pension payments in the past 10 years, Lincoln Electric stated in a pres...