MetLife to Provide Annuity Benefits to Nearly 12,000 Dow Retirees and Beneficiaries

Rhea-AI Summary

MetLife's subsidiary, Metropolitan Tower Life Insurance Company, has partnered with Dow to manage annuity benefits for about 12,000 retirees and beneficiaries in Dow's pension plans, amounting to approximately $700 million. Dow trusts MetLife to provide guaranteed lifetime income. This action follows Dow's previous group annuity contract purchase in November 2020. Importantly, this agreement will not alter the monthly pension benefits for retirees, as Metropolitan Tower Life will handle payment responsibilities, ensuring retirees receive their entitled earnings without requiring any action from them.

Positive

• Partnership with Dow strengthens MetLife's position in managing pension obligations.
• The agreement covers approximately $700 million in pension obligations for 12,000 retirees and beneficiaries.
• Retirees will experience no disruption in their monthly benefit payments.

Negative

• None.

MetLife, Inc. announced today that its subsidiary, Metropolitan Tower Life Insurance Company, has entered into an agreement with Dow (NYSE: DOW) to provide annuity benefits to approximately 12,000 retirees and beneficiaries in Dow’s defined benefit (DB) pension plans, representing pension obligations of approximately $700 million.

“We are pleased to expand our relationship with Dow, which has once again selected MetLife as a trusted partner to provide guaranteed lifetime income to their retirees, as well as benefits to the retirees' spouses and beneficiaries,” says Melissa Moore, senior vice president and head of Annuities at MetLife. “MetLife and Dow share common values and are both focused on ensuring secure futures for these individuals.”

Dow purchased a group annuity contract from Metropolitan Tower Life Insurance Company in November 2020. The transaction will not change the amount of the monthly pension benefit received by the corporation’s retirees and beneficiaries. Metropolitan Tower Life Insurance Company, rather than Dow, will be responsible for making these monthly payments. No action is needed by retirees or beneficiaries. Dow and MetLife will provide details to retired participants and beneficiaries whose ongoing payments will be made by Metropolitan Tower Life Insurance Company.

“Our retirees are an integral part of the Dow community so we wanted to find a partner we trusted to ensure that they received their earned benefits,” says Bryan Jendretzke, Global Benefits Director at Dow. “In MetLife, we found that trusted partner.”

About MetLife

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. For more information, visit www.metlife.com.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

Forward-Looking Statement

The forward-looking statements in this news release, such as “future,” and “will,” 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005572/en/

FAQ

What is the recent agreement between MetLife and Dow?

MetLife's subsidiary has entered an agreement to provide annuity benefits to about 12,000 retirees in Dow's pension plans, covering $700 million in pension obligations.

How does this affect retirees of Dow?

There will be no changes to the monthly pension benefits; payments will now be managed by Metropolitan Tower Life Insurance Company.

What is the significance of the $700 million pension obligation?

This amount represents the total pension obligations for the 12,000 retirees and beneficiaries covered under the agreement between MetLife and Dow.

When was the previous annuity contract established between MetLife and Dow?

The previous group annuity contract was purchased by Dow from Metropolitan Tower Life Insurance Company in November 2020.

What should retirees do following the new agreement?

Retirees do not need to take any action, as monthly payments will continue as usual through Metropolitan Tower Life Insurance Company.