Unisys Corporation (NYSE: UIS) has completed a lump-sum offer for eligible former associates who have deferred vested benefits under the company´s US pension plan to receive the value of their entire pension benefit in a lump-sum payment.
Approximately 5,800 former associates have accepted this offer, reducing the number of participants in the plan by about 8%.
Participants will receive lump-sum payments valued at approximately USD216 million from the pension trust, reducing the plan´s projected benefit obligation by slightly more than the lump-sum amount by the end of 2016. Unisys also expects that this action will reduce annual administrative costs, including Pension Benefit Guaranty Corporation premiums.
Unisys expects the lump-sum payments to be made by the end of the year. The company does not anticipate that this action will result in a settlement charge. In addition, because the payments will be made by the pension trust, they will not impact the company´s cash position. Unisys also expects this action to have minimal impact on plan funding levels.
Unisys is a global information technology company that specializes in providing industry-focused solutions integrated with leading-edge security to clients in the government, financial services and commercial markets. Its offerings include security solutions, advanced data analytics, cloud and infrastructure services, application services and application and server software.