3M said it purchased a group annuity contract with Metropolitan Tower Life Insurance Company and will transfer a portion of its U.S. pension payment obligations under the 3M Employee Retirement Income Plan (ERIP) to the insurer on June 13, 2024.

1. 01

   3M said it purchased a group annuity contract with Metropolitan Tower Life Insurance Company and will transfer a portion of its U.S. pension payment obligations under the 3M Employee Retirement Income Plan (ERIP) to the insurer on June 13, 2024.

2. 02

   The company said it will transfer approximately $2.5 billion of defined benefit pension obligations and related plan assets for approximately 23,000 U.S. retirees and beneficiaries, representing approximately 60% of ERIP retiree participants.

3. 03

   The company said the contract was purchased using ERIP trust assets and no additional funding contribution was required. It said Metropolitan Tower Life Insurance Company will begin paying and administering benefits starting October 1, 2024, and that individuals' monthly benefit payment amounts will not change.

4. 04

   3M said it expects to recognize an estimated non-cash, pre-tax non-operating pension settlement charge of $0.8 billion to $0.9 billion in the quarter ending June 30, 2024. It said it will exclude the charge from non-GAAP results, so it will not affect adjusted net income or adjusted free cash flow.

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