07:46 AM EDT, 06/13/2024 (MT Newswires) -- 3M ( MMM ) said Thursday that it purchased a group annuity contract to transfer about $2.5 billion of its US pension obligations for around 23,000 retirees and beneficiaries to MetLife's ( MET ) Metropolitan Tower Life Insurance.

The company said this affects about 60% of the 3M Employee Retirement Income Plan retiree participants but won't change their monthly benefits nor impact current employees.

The transaction requires no additional funding and will result in a non-cash pre-tax pension settlement charge of $800 million to $900 million in Q2 but will not impact its Q2 and full year adjusted net income, according to 3M ( MMM ).

Met Tower Life is expected to begin paying the retirement benefits Oct. 1, 3M ( MMM ) said.

Price: 101.70, Change: +0.49, Percent Change: +0.48