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Crown Holdings To Settle U.K. Pension Plan Obligations; To Record Charge Of About $1.3 Bln

Crown Holdings Inc. (CCK) Friday said that the Trustees of its U.K. defined benefit pension plan have entered into a transaction with Pension Insurance Corp. to fully insure all of its U.K. pension liabilities. The company expects to record a charge of about $1.3 billion in the fourth quarter.

The transaction provides a policy which covers the benefits for about 10,300 retirees and 2,200 deferred members.

The intention and expectation is that the transaction will be followed by completion of administrative processes during October, which will result in the irrevocable transfer of the plan's obligations to PIC in November 2021.

Upon completion of the transfer, the company will eliminate its cash flow and earnings risk associated with over $2.5 billion in both U.K. pension plan assets and liabilities.

The charge is non-cash with the exception of a contribution to the plan of about $90 million to facilitate the transaction.

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