Unisys Completes Lump-Sum Cash-out Offer under Its U.S. Pension Plan for Eligible Former Associates
Action enables company to reduce pension plan volatility and cost
BLUE BELL, Pa., December 19, 2016 – Unisys Corporation (NYSE: UIS) today announced that it has completed a lump-sum offer for eligible former associates who have deferred vested benefits under the company's U.S. 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 percent.
Participants will receive lump-sum payments valued at approximately $216 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.
"This is a positive step for Unisys," said Inder M. Singh, chief financial officer for Unisys. "We expect it to reduce the absolute size of our pension liability, administrative costs and the balance sheet volatility related to our pension obligations. We are pleased with the results of this offer."
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. Unisys offerings include security solutions, advanced data analytics, cloud and infrastructure services, application services and application and server software. For more information, visit www.unisys.com.
Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Additional discussion of factors that could affect Unisys future results is contained in our periodic filings with the Securities and Exchange Commission.
RELEASE NO.: 1219/9470
Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.