Following a continuing trend to de-risk from pension liabilities, Denver-based Molson CoorsBrewing Co. has purchased a group annuity contract from AtheneAnnuity and Life Co. that will transfer about $900 million inpension liabilities away from the brewer.

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As of December 31, the MillerCoors LLC Pension Plan had $2.8billion in assets, according to the Molson Coors subsidiary’s mostrecent Form 5500 filing.

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Under the agreement, Athene will issue a group annuity contractto MillerCoors and individual annuity certificates to applicableretirees and beneficiaries. AAIA will have direct paymentresponsibility for all the liabilities covered in thistransaction.

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Pensions & Investments reports that as of May 1, 2018, Athene willbegin making benefit payments as a result of the deal.

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About 6,000 retirees and beneficiaries in the MillerCoors LLCPension Plan will be the recipients, the report said, and an Athenenews release adds that the company will also provide ongoingadministrative services. Retirees and beneficiaries will receivethe same monthly benefit they were previously receiving from theplan.

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In August, P&I reported that in a recently filed 10-Q, MolsonCoors “expects to contribute between $300 million and $320 milliontotal to its global pension plans in 2017.”

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As of December 31, the company had $5.9 billion in globaldefined benefit assets and $6.2 billion in benefit obligations fora funded status of 95.2 percent, according to its most recent10-K.

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As of the same date, the global DB plans had an aggregate assetallocation of 62.7 percent fixed income (compared with a 65.9percent target), 24.4 percent equities (23.7 percent), 8.9 percentother (6.4 percent), 2.2 percent real estate (2.2 percent) and 1.8percent hedge funds (1.8 percent).

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No information was available at the time on U.S. DB plan assetsor obligations.

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