Franklin Electric Co., Inc. has entered into a significant agreement with Principal Life Insurance Company to purchase a Single Premium Guaranteed Annuity Contract. This contract will facilitate the transfer of pension benefit obligations for approximately 684 retirees and beneficiaries from Franklin Electric's Pension Plan to the insurer. The move, aimed at terminating the company's Pension Plan, is expected to reduce its U.S. pension plan liabilities by around $30 million. The transaction will be funded by the assets of the Plan and is set to conclude by July 29, 2025, provided all closing conditions are met. This arrangement will see the insurer assume responsibility for annuity payments starting July 29 for deferred annuitants and October 1 for retired annuitants.
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