August 2, 2012 (PLANSPONSOR.com) – NCR Corporation has announced the next phase of its pension strategy to materially reduce the size of its pension liability.
The company will 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 planned contributions will be financed through capital market borrowings.
The company expects to improve its underfunded position by an estimated $800 million. This is the second phase of NCR's pension strategy. In April 2010, the company 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.