Domtar Corp., Fort Hill, S.C., purchased two group annuity contracts from insurance companies to transfer U.S. and Canadian pension plan liabilities during the second quarter.

The paper products company purchased a contract to transfer about C$135 million ($105 million) in Canadian liabilities and purchased another to transfer about $85 million in U.S. plan liabilities, according to its 10-Q filing with the SEC on Aug. 5.

The transactions closed in April and June, respectively, according to the filing.

Also, the company purchased another contract from an existing insurer to convert C$180 million in insured Canadian plan liabilities under an existing buy-in contract, the filing said.

All three buyout transactions transferred the responsibility of paying benefits to about 3,253 retirees and beneficiaries. Domtar Corp. did not disclose the names of any of the insurers.

As of Dec. 31, the company's global pension plan assets totaled $1.622 billion, while projected benefit obligations totaled $1.433 billion, for a funding ratio of 113.2%, according to the company's most recent 10-K filing. The filing did not break down assets by region.

Company spokeswoman Jan Martin could not be immediately reached for further information.

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