3M Transfers Part of US Pension Payment Obligations

ST. PAUL, Minn., June 13, 2024 /PRNewswire/ — 3 million (NYSE: MMM) announced that it purchased a group pension contract and will transfer a portion of its US pension payment obligations under 3 million Employee Retirement Income Plan (ERIP) for Metropolitan Tower Life Insurance Company (Met Tower Life), an insurance company. According to the contract, 3 million will transfer approx 2.5 trillion dollars of defined benefit pension liabilities and plan-related assets for Met Tower Life’s approximately 23,000 American retirees and beneficiaries. This represents approximately 60% of ERIP retiree participants. The contract was purchased using assets from 3M’s ERIP trust and no additional financing contribution was required as part of this transaction.

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3 million (PRNewsfoto/3 million)

ACTIvE October 1, 2024, Met Tower Life will begin paying and administering the pension benefits of the retirees and beneficiaries involved in this pension transfer. This change will not affect the amount of monthly benefit payments of individuals. This decision does not affect current employees. Pensioners and beneficiaries who are involved in this pension transfer will be notified this month.

In connection with this transaction, the company expects to recognize an estimated non-cash pre-tax non-operating pension settlement charge between 0.8 dollars AND 0.9 trillion dollars at the end of the quarter June 30, 2024. The actual settlement charge will depend on the finalization of actuarial assumptions, including the discount rate, as well as the fair value of the plan assets at the measurement date. 3 million will exclude this settlement charge in achieving non-GAAP results. Accordingly, it will not impact the Company’s second quarter or full year 2024 adjusted net income or adjusted free cash flow.

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3 million (NYSE: MMM) believes that science helps create a brighter world for everyone. By unlocking the power of people, ideas and science to reimagine what’s possible, our global team uniquely addresses the opportunities and challenges of our customers, communities and planet. Learn how we’re working to improve lives and do what comes next 3 million.com/news.

Forward-looking statements
This news release contains forward-looking statements regarding 3M’s defined benefit pension obligations. You can identify these statements by using words such as “plan,” “expect,” “intend,” “believe,” “project,” “target,” “anticipate,” “aim,” “estimate,” “will ,” “should,” “may,” “will,” “anticipate” and other words and terms of similar meaning. Among the factors that could cause actual results to differ materially are the following: (1) risks that may affect the Company’s funding obligations under pension and defined benefit pension plans, including those related to financial markets; and interest rates, the value of plan assets, legislative or regulatory changes and other matters that may affect the timing or amount of the Company’s pension and postretirement plan obligations; (2) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company’s control, including inflation, recession, military conflicts and natural and other disasters; or climate change affecting the Company’s operations or its customers and suppliers; (3) foreign currency exchange rates and fluctuations in those rates; (4) liabilities and the outcome of contingencies related to certain fluorochemicals known as “PFAS,” including liabilities related to claims, lawsuits and government regulatory proceedings related to various PFAS-related products and chemicals, and risks related to the Company’s plans to exit PFAS production and discontinue the use of PFAS in its product portfolio; (5) risks associated with the settlement of class actions to resolve claims by public water systems in United States in relation to PFAS; (6) legal proceedings, including significant developments that may occur in legal and regulatory proceedings described in the Company’s reports on Form 10-K, 10-Q and 8-K (the “Reports”); (7) competitive conditions and customer preferences; (8) timing and market acceptance of new product and service offerings; (9) the availability and cost of components, compounds, raw materials and purchased energy due to shortages, increases in demand and wages, supply chain disruptions or natural or other disasters; (10) unforeseen problems or delays with the phased implementation of a global enterprise resource planning system, or security breaches and other disruptions to the Company’s information technology infrastructure; (11) the impact of acquisitions, strategic alliances, divestitures and other strategic events resulting from portfolio management actions and other evolving business strategies; (12) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities; (13) the Company’s credit ratings and its cost of capital; (14) external tax-related conditions, including changes in tax rates, laws or regulations; (15) matters relating to the spin-off of the Company’s Healthcare business, including the risk that expected benefits may not be realized; the risk that costs or dissynergies will exceed anticipated amounts; potential business interruption; management time deviation; the impact of the transaction on the Company’s ability to retain talent; potential impacts on the Company’s relationships with customers, suppliers, employees, regulators and other parties; the ability to achieve the desired tax treatment; the risk that any required consent or approval will not be obtained; risks under the agreements and obligations related to the spin-off, and (16) matters relating to combat arms earplugs (“CAE”), including those related to August 2023 settlement intended to resolve, to the fullest extent possible, all litigation and supposed claims involving CAEs sold or manufactured by the Company’s subsidiary Aearo Technologies and certain of its subsidiaries and/or the Company. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is contained in the reports under “Cautionary Note Regarding Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). The Company undertakes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

Investor contact:
Bruce Jermeland
(651) 733-1807
Diane Farrow
(612) 202-2449
Eric Herron
(651) 233-0043

Media contact:
Sean Lynch


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SOURCE 3 million company

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