NORTH CANTON, Ohio,
Jan. 22, 2015 /PRNewswire/
-- The Timken Company (NYSE: TKR; www.timken.com) today
announced that it has entered into an agreement to purchase a group
annuity from The Prudential Insurance Company of America (NYSE:
PRU) to pay future pension benefits for approximately 5,000 U.S.
Timken retirees. In April, Prudential will begin paying benefits to
certain retirees and surviving beneficiaries currently receiving
payments from The Timken Company's U.S. retirement plan.
The annuity purchase will have no impact on the monthly pension
benefits Timken retirees and surviving beneficiaries receive today.
The group annuity contract includes an irrevocable commitment by
Prudential to make annuity payments to affected retirees covered
under the contract. Timken is notifying by mail those individuals
who are affected by the forthcoming change.
Timken has always been committed to meet its pension obligations
responsibly and with care. Over the past decade, the company has
contributed nearly $2 billion to its global pension plans, and
its U.S. plans are now fully funded. This stewardship allows the
company to take advantage of the favorable funded status in an
effort to reduce risk and protect participant pension benefits
going forward.
State Street Global Advisors served as independent fiduciary in
the insurance company selection process. State Street's sole
responsibility was to represent the interests of plan participants
and beneficiaries. Following a rigorous evaluation, State Street
selected Prudential, a highly rated company in the insurance
industry and a leader in managing retirement assets and financial
risk.
When finalized, this annuity purchase will reduce The Timken
Company's gross pension liability by about $600 million. The
purchase will be funded by existing plan assets and requires no
cash contribution from the company, although the company will incur
a non-cash pension settlement charge of approximately
$220 million in the first quarter. The balance of the Timken
U.S. plans are expected to remain fully funded after the annuity
purchase.
About Prudential
Prudential Retirement delivers
retirement plan solutions for public, private and non-profit
organizations. Prudential Retirement is a business unit of The
Prudential Insurance Company of America (PICA), Newark, NJ, and Prudential Retirement
Insurance and Annuity Company (PRIAC), Hartford, CT, both of which are Prudential
Financial companies. Services include defined contribution, defined
benefit and non-qualified deferred compensation record keeping,
administrative services, investment management, comprehensive
employee education and communications, and trustee services, as
well as a variety of products and strategies, including
institutional investment and income products, pension risk transfer
solutions and structured settlement services. With over 85 years of
retirement experience, Prudential Retirement helps meet the needs
of 4.0 million participants and annuitants. Prudential Retirement
has $356.1 billion in retirement
account values as of September 30,
2014. Prudential Financial, Inc. (NYSE: PRU) is a financial
services leader with more than $1 trillion of assets under
management as of September 30, 2014.
In the U.S., Prudential's iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a
century. For more information, please visit
www.news.prudential.com. Insurance products are issued by PICA and
PRIAC, both of which also provide retirement products and services.
Each company is solely responsible for its financial condition and
contractual obligations.
About The Timken Company
The Timken Company
(NYSE: TKR; www.timken.com) engineers, manufactures and markets
Timken® bearings, transmissions, gearboxes, chain, and related
products, and offers a spectrum of power system rebuild and repair
services around the world. The leading authority on tapered roller
bearings, Timken today applies its deep knowledge of metallurgy,
tribology and power transmission across the broad spectrum of
bearings and related systems to improve the reliability and
efficiency of machinery and equipment all around the world. Known
for its quality products and collaborative technical sales model,
Timken posted $3 billion in sales in
2013 (excluding steel business sales). With approximately 17,000
people operating from 28 countries, Timken makes the world more
productive and keeps industry in motion.
Certain statements in this release (including statements
regarding the company's estimates and expectations) that are not
historical in nature are "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
particular, the statements regarding the expected timing,
completion and effects of the closing of the purchase of the group
annuity contract from The Prudential Insurance Company of America
(NYSE:PRU) and the expected funded status of the company's U.S.
plans are forward-looking. The company cautions that actual results
may differ materially from those projected or implied in
forward-looking statements due to a variety of important factors,
including: uncertainties inherent in regulatory reviews, market
conditions and general and international economic conditions, and
other factors that could affect the timing or the ability of the
parties to close the transactions referenced in this
release. Additional factors are discussed in the company's
filings with the Securities and Exchange Commission, including the
company's Annual Report on Form 10-K for the year ended Dec.
31, 2013, quarterly reports on Form 10-Q and current reports on
Form 8-K. Except as required by the federal securities laws, the
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
CONTACTS
|
|
The Timken
Company
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Prudential
Financial, Inc.
|
Media:
|
Media:
|
Gloria Irwin,
234-262-3514
|
Tanya Valle,
973-802-4370
|
mediarelations@timken.com
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tanya.valle@prudential.com
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|
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Investors:
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Steve Tschiegg,
234-262-7446,
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Josh Stoffregen,
973-802-3996,
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steve.tschiegg@timken.com
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josh.stoffregen@prudential.com
|
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SOURCE The Timken Company