Your employer pension might be moving to an insurance company, and you won’t get a vote.
On October 27, 2025, Eastman Kodak transferred $1.8 billion in pension obligations to Metropolitan Tower Life Insurance Co., a MetLife unit. That shifts pension payments for thousands of Kodak retirees from the company’s books to an insurance product.
You’re probably not a Kodak employee. But your pension could be next—and here’s why that matters for your retirement security.
What Just Happened: Kodak Handed Off Pension Risk
Kodak decided it no longer wanted the financial headache of managing pension promises. So it paid MetLife $1.8 billion to take over those obligations through a pension risk transfer (PRT).
Think of it like refinancing a mortgage, except your employer refinances its retirement debt to an insurer. MetLife now owes pension checks to Kodak retirees. Kodak gets the liability off its balance sheet.
This happened October 27. No warning for most pensioners. The deal was done.
Why Companies Are Dumping Pensions on Insurers
Three financial pressures drive these transfers:
- Longevity risk disappears. If retirees live longer than expected, that’s now MetLife’s problem—not Kodak’s. The company locks in a fixed cost today instead of gambling on how long retirees will collect checks.
- Investment volatility goes away. Pension funds require constant management and market risk. One bad year in stocks, and the company has to pour cash into the pension fund. After transfer, that’s the insurer’s headache.
- Balance sheets look healthier. Wall Street rewards companies that shed long-term liabilities. Kodak’s financial statements just improved overnight, even though retirees still get the same checks.
- Regulatory compliance costs drop since the Pension Benefit Guaranty Corporation oversight shifts partially to insurance regulation.
60+ Companies Did This in 2024: Is Your Employer Next?
Kodak isn’t unique. The pension risk transfer market exploded over the past decade.
Why the surge? Low interest rates from 2008-2021 made pension obligations expensive to fund. Now that rates have climbed, companies see a window to offload pension risk before conditions change again.
Industry data shows PRT deals topped $50 billion annually in recent years. MetLife, Prudential, and Athene dominate this market. Your employer might be negotiating a similar deal right now—and you won’t know until it’s done.
Check your pension plan’s funding status. If it’s underfunded by less than 10%, your company might be eyeing a transfer. Fully funded pensions are easiest to transfer since the math works cleanly for insurers.
What Changes for Kodak Pensioners (And What Doesn’t)
Your monthly check amount stays the same. Federal law (ERISA) requires that. MetLife must pay what Kodak promised.
But three things shift:
| Before Transfer (Kodak) | After Transfer (MetLife) |
|---|---|
| Pension Benefit Guaranty Corporation (PBGC) backs your pension if Kodak fails | State insurance guarantee associations back your pension if MetLife fails (coverage varies by state, typically $250,000-500,000 max) |
| Kodak manages investments and pays from pension fund | MetLife manages investments as part of its general account |
| Annual pension statements from Kodak | Annuity statements from MetLife |
The biggest change? Your pension protection shifts from federal PBGC insurance (covers up to around $75,000/year for a 65-year-old) to state guarantee systems with lower caps. Most state guarantees max out at $250,000-500,000 total, not per year.
If your annual pension exceeds $75,000, you might have slightly weaker protection after transfer. For most retirees under that threshold, protection levels are similar.
Should You Worry If Your Pension Gets Transferred?
Depends on your pension size and the insurer’s strength.
MetLife’s financial position: Metropolitan Tower Life Insurance Co. carries an A+ rating from A.M. Best, indicating superior ability to meet obligations. The company manages hundreds of billions in assets and specializes in long-term liabilities like pensions.
Three factors matter for your security:
- Insurer rating: Stick with A- or higher from A.M. Best. MetLife qualifies.
- Your pension amount: Under $250,000 total? State guarantees likely cover you fully if the insurer fails.
- Diversification: If your entire retirement depends on one pension, consider building additional savings. Even strong insurers face risks during severe economic crises.
The track record looks solid. Major pension risk transfers have maintained payment continuity for decades. But nothing’s guaranteed forever.
3 Steps If Your Company Announces a Pension Transfer
You can’t stop the transfer—federal law allows it without employee consent. But you can protect yourself:
- Check the insurer’s rating immediately. Go to A.M. Best’s website and verify the rating. Below A-? Start asking questions and consider consulting a financial advisor.
- Review your state’s guarantee limits at the National Organization of Life and Health Insurance Guaranty Associations. Know exactly what protection you’d have if the insurer failed.
- Document everything. Save all transfer notices, pension statements, and benefit calculations. You’ll need these if disputes arise later about payment amounts or terms.
Some retirees eligible for lump-sum buyouts. If your pension offers this option during a transfer, run the numbers carefully. Taking a lump sum eliminates insurer risk but creates investment risk—you’re now responsible for making the money last.
The Hidden Winners and Losers
Corporations love these deals. Kodak just cleared $1.8 billion in liabilities off its books, making the company look more financially stable to investors and lenders.
MetLife wins too. Pension risk transfers generate steady fee income and investment float. The company bets it can manage longevity and investment risk better than corporate pension committees. Given their scale and expertise, that’s often true.
Pensioners? Mixed bag. You get the same monthly check, but your backstop protection shifts from federal PBGC to state guarantee systems. For most retirees, that’s fine. For high-income pensioners with payments exceeding guarantee limits, there’s slightly more risk.
The real question: Does your pension deserve the same protection as bank deposits (FDIC-insured) or should it depend on state guarantee funds with lower caps? Congress hasn’t addressed this gap.
Frequently Asked Questions
Can my employer transfer my pension without my permission?
Yes. Federal ERISA law allows employers to transfer pension obligations to insurers without employee or retiree consent, as long as benefit amounts remain unchanged. You’ll receive notice after the deal is finalized, but you can’t block it. The only exception: if you’re offered a lump-sum buyout, you can choose whether to accept it or keep your monthly pension.
What happens to my pension if MetLife fails?
State insurance guarantee associations would step in, but coverage varies by state—typically $250,000-500,000 maximum per person. This differs from PBGC protection, which covers up to around $75,000 annually for a 65-year-old. If your annual pension is under $40,000, state guarantees likely cover your total liability. Higher pensions might face risk if the insurer becomes insolvent.
How common are pension risk transfers in 2025?
Extremely common and growing. The PRT market exceeded $50 billion annually in recent years, with over 60 major transactions in 2024 alone. Companies including IBM, Lockheed Martin, and now Kodak have transferred billions in pension obligations to insurers like MetLife, Prudential, and Athene. Expect this trend to accelerate as interest rates make transfers more financially attractive for corporations.
Should I take a lump-sum buyout if offered during a transfer?
It depends on your financial situation and life expectancy. A lump sum eliminates insurer risk but creates investment risk—you must manage the money yourself. Run the numbers: if you’re healthy and expect to live 20+ years past retirement, monthly pension payments often provide more total value. If you have serious health issues or need immediate liquidity, a lump sum might make sense. Consult a financial advisor before deciding; this choice is typically irreversible.
Will my pension amount change after transfer to an insurer?
No. Federal law (ERISA) requires that transferred pensions maintain the exact same benefit amounts, payment schedules, and terms. MetLife must pay what Kodak promised. The only changes are administrative: you’ll receive statements from the insurer instead of your former employer, and your pension protection shifts from PBGC to state guarantee systems. Monthly check amounts remain identical.
Bottom Line: Pension Transfers Are Here to Stay
Kodak’s $1.8 billion deal with MetLife isn’t an outlier. It’s the new normal for corporate pensions.
Over the next decade, expect more companies to follow. Rising interest rates make these transfers financially attractive. Corporate boards prefer predictable costs over pension volatility. Insurers are eager buyers with expertise managing long-term liabilities.
For retirees, the practical impact is minimal if your pension is modest and the insurer is highly rated. For higher pensions exceeding guarantee limits, there’s slightly more risk.
The real takeaway? Don’t rely solely on your pension. Build diversified retirement savings through 401(k)s, IRAs, or taxable accounts. Even the strongest pension backed by the best insurer isn’t immune to economic catastrophes.
Your employer already showed they don’t want the pension risk. Maybe you shouldn’t want to depend entirely on it either.