MetLife Assumes Post-Retirement Life Insurance Liabilities For 8,000 Avaya Retirees
MetLife, Inc. (NYSE: MET) announced today that its subsidiary, Metropolitan Life Insurance Company, entered into an agreement in the first quarter of 2021 to assume responsibility for about $190 million of Avaya's (News - Alert) post-retirement life insurance obligations covering approximately 8,000 retirees.
Using existing plan assets, Avaya, through its Post Retirement Life Insurance Benefits Trusts, purchased retiree life insurance buyout contracts from Metropolitan Life Insurance Company to cover eligible retirees. The buyout transaction will not change life insurance benefits for Avaya's retirees and their beneficiaries. With the transaction, Metropolitan Life Insurance Company, rather than Avaya, will be responsible for life insurance costs, benefit payments and recordkeeping. No action is needed by retirees or beneficiaries. Avaya and MetLife have provided additional information to covered retirees whose benefits will be paid by Metropolitan Life Insurance Company.
"With this transaction, we look forward to continuing our long-term relationship with Avaya and providing security to their retirees," said Jay Wang, senior vice president and head of Risk Solutions for MetLife's Retirement & Income Solutions business. "MetLife is a leader in providing retiree life insurance funding and buyout solutions. By taking on these retiree life insurance obligations, we will help Avaya reduce its financial liabilities while securing these benefits for retirees and beneiciaries."
MetLife, through its subsidiary Metropolitan Life Insurance Company, has been providing retiree life insurance funding solutions for more than 60 years and is a market leader for post-retirement and welfare benefits' solutions.
Avaya was advised on the deal by SageView Advisory Group.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates ("MetLife"), is one of the world's leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe, and the Middle East.
About SageView Advisory Group
SageView Advisory Group is an SEC (News - Alert) Registered Investment Advisory firm (RIA) serving retirement plan sponsors and individuals throughout the United States since 1989. SageView advises on 401(k), 403(b), 457, defined benefit and deferred compensation plans. SageView is headquartered in Newport Beach, California with 25 offices nationwide.
SageView Advisory Group, LLC is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where SageView Advisory Group, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future results. No advice may be rendered by SageView Advisory Group, LLC unless a client service agreement is in place.
For more information about SageView, visit www.sageviewadvisory.com or call (800) 814-8742.
The forward-looking statements in this news release, which contain words such as "will" and "look forward" are based on assumptions and expectations that involve risks and uncertainties, including the "Risk Factors" MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife's future results could differ, and it has no obligation to correct or update any of these statements.
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