Unisys Announces Changes to U.S. Pension Plans as Part of Ongoing Commitment to Stay Competitive and Reduce Costs
BLUE BELL, Pa., March 22, 2006 – Unisys Corporation (NYSE: UIS) today announced that it has adopted changes to its U.S. defined benefit pension plans effective December 31, 2006, and will significantly increase matching contributions to its defined contribution savings plan beginning January 1, 2007.
The changes to the U.S. plans are part of a global effort by Unisys to provide a competitive retirement program while controlling the level and volatility of retirement costs. They would reduce retirement-related expenses by approximately $700 million over the next decade, based on current interest rates and actuarial assumptions.
The changes to the U.S. pension plans affect most U.S. employees and senior management. They include:
As a result of stopping the accruals for future benefits in its U.S. defined benefit pension plans, Unisys will record a one-time pre-tax curtailment gain of approximately $45 million in the first quarter of 2006. Based on the changes to the U.S. plans and including the $45 million curtailment gain, the company expects its 2006 pension expense worldwide to be approximately $168 million, down from $181 million in 2005.
“Contributing to our employees’ retirements while keeping Unisys competitive in the marketplace is an issue we have been giving thoughtful consideration to for some time,” said Joseph W. McGrath, Unisys president and chief executive officer. “We think these changes have struck the appropriate balance between controlling our pension costs and continuing to help our employees prepare for retirement.”
Additional information on the company’s retirement-related expenses can be found on the Unisys Investor Web Site. About Unisys Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialize in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. For more information, visit www.unisys.com.
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