NCR Corp. (NCR: Quote) said Tuesday that it expects to make a contribution to its U.S. pension plan and offer a voluntary lump sum payment option to certain former employees who are deferred vested participants of the U.S. pension plan who have not yet started monthly payments of their pension benefit.
The company expects to improve its underfunded position by an estimated $800 million through contributions to the U.S. qualified pension plan. The planned contributions will be financed through capital market borrowings.
The actions announced Tuesday constitute the second phase of NCR's pension strategy. In April 2010, NCR announced the first phase of its strategy to substantially reduce future volatility in its U.S. pension plan through a rebalancing of its asset allocation to a portfolio of entirely fixed income assets by the end of 2012.
The total liability associated with the U.S. deferred vested participants is about 33% of the U.S. pension liability. In the coming weeks, NCR will contact about 23,000 eligible deferred vested participants with personalized information about the voluntary lump sum offer, which is designed to give them more flexibility in managing their retirement. NCR expects to complete lump sum payouts under the voluntary lump sum offer by year end 2012.
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by RTT Staff Writer
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