MAPLEWOOD (dpa-AFX) - 3M Co. (MMM) announced Thursday that it has purchased
a group annuity contract and will transfer a portion of its U.S. pension payment
obligations to Metropolitan Tower Life Insurance Co., called as Met Tower Life.
The U.S. pension payment obligations come under the 3M Employee Retirement
Income Plan or ERIP.

As part of the deal, 3M sees an estimated non-cash pre-tax non-operating pension
settlement charge of between $0.8 and $0.9 billion in the quarter ending June
30.

Under the contract, 3M will transfer around $2.5 billion of its defined benefit
pension obligations and related plan assets for around 23,000 U.S. retirees and
beneficiaries to Met Tower Life.

This represents approximately 60% of ERIP retiree participants. The company
noted that the contract was purchased using assets from 3M's ERIP trust and no
additional funding contribution was required as part of the deal.

On October 1 this year, Met Tower Life will begin paying and administering the
retirement benefits of the retirees and beneficiaries included in this annuity
transfer. The change will not affect the amount of individuals' monthly benefit
payments, and the decision does not impact current employees.

The company plans to notify retirees and beneficiaries who are included in this
annuity transfer this month.

In pre-market activity on the NYSE, 3M shares were gaining around 1.02 percent
to trade at $102.24.



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