3M to transfer pension-payment obligations for 23,000 U.S. retirees

MW 3M to transfer pension-payment obligations for 23,000 U.S. retirees

By Tomi Kilgore

3M to book a charge of nearly $1 billion as it transfers some of its pension obligations to Met Tower Life

3M Co. said Thursday it will transfer about $2.5 billion of its pension-payment obligations to Metropolitan Tower Life Insurance Co.

The consumer- and industrial-products company $(MMM)$ said the transfer, which will affect the pension payments of about 23,000 U.S. retirees, won't change the amount of the monthly benefit payments. The only change is who is making the payments.

3M, which makes Post-it Notes, Scotch tape, face masks and Command strips, said those who will be affected by the transfer will be notified in June.

"MetLife is pleased we were entrusted to provide guaranteed lifetime income to 3M retirees, as well as benefits to the retirees' spouses and beneficiaries," said Melissa Moore, head of annuities at MetLife Inc. $(MET)$

As a result of the transfer, the company said it expects to record a charge of between $800 million to $900 million for the second quarter. 3M said the charge will not impact its adjusted earnings for the second quarter or the full year.

The stock rose 0.5% in premarket trading.

It has gained 1.1% so far in June, to put it on track for a four-month winning streak. That would be the longest such streak since the four-month stretch that ended in December 2019.

Meanwhile, the Dow Jones Industrial Average DJIA, of which 3M's stock is a component, has gained 0.1% in June.

-Tomi Kilgore

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June 13, 2024 08:09 ET (12:09 GMT)

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