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Another Company Offering Lump-Sums to De-Risk Pension

(Cont...)

The total liability associated with the U.S. deferred vested participants is approximately 33% of the U.S. pension liability. In the coming weeks, NCR will contact approximately 23,000 eligible deferred vested participants with personalized information about the voluntary lump-sum offer, which includes the following choices: 

  • One-time lump-sum payment rolled over to an individual retirement account (IRA) or another employer's qualified plan (if permitted by that plan); 
  • One-time lump-sum payment rolled over to the NCR Savings Plan (for NCR Savings Plan participants only); 
  • One-time lump-sum payment in cash payable in December 2012; 
  • Monthly annuity payment (single life or joint and survivor) commencing in December 2012; and 
  • Remain in the U.S. pension plan as a deferred vested participant. 
NCR is following in the footsteps of auto giants GM (see “GM Transfers Some Pension Risk”) and Ford (see “Ford Offers Lump-Sums to De-Risk Pension”) in offering lump-sums in an effort to de-risk pensions.

Rebecca Moore
editors@plansponsor.com

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