Ford offers lump sums to de-risk pension
Ford Motor Co. announced it will offer approximately 90,000
eligible U.S. salaried retirees and former employees the option to receive a
voluntary lump-sum pension payment. In its first-quarter earnings statement,
Ford said the voluntary payout is part of the company’s long-term strategy to
de-risk its global funded pension plans. If an individual elects to receive the
lump-sum payment, the company’s pension obligation to the individual will be settled.
Payouts will start later this year and be funded from
existing pension plan assets. This is in addition to the lump-sum pension
payout option available to U.S. salaried future retirees as of July 1.
“Continuing to improve the underlying strength of our
balance sheet remains a fundamental part of financing the One Ford plan,” says
Bob Shanks, Ford executive vice president and chief financial
officer. “Providing the option of a lump-sum payment to current salaried
U.S. retirees and former employees will reduce our pension obligations and
balance sheet volatility.”