Administration June 12, 2014

NCR Offers Pension Lump Sums to Retirees

June 12, 2014 (PLANSPONSOR.com) – NCR Corporation is offering a second defined benefit plan lump-sum window—this time to retirees and beneficiaries already receiving monthly benefits.
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In 2012, the company offered a lump-sum window to terminated, vested participants in an effort to reduce defined benefit (DB) plan risk (see “Another Company Offering Lump Sums to De-Risk Pension”). “This offer is part of our pension transformation and is consistent with our overall de-risking strategy,” says John Boudreau, NCR Treasurer. “There is no additional funding of the plan required for this transaction as all distributions will be made out of existing plan assets. The plan’s funded status is expected to remain materially unchanged as a result of this offer.”

NCR froze its DB plan in 2006 (see “NCR Announces Pension Freeze”).

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The latest offer is being made only to former employees or beneficiaries (approximately 20,000) who commenced monthly benefits under the plan between January 1, 1994, and April 1, 2014. The offer includes the following choices:

  • One-time lump sum payment rolled over to an individual retirement account (IRA) or another qualified plan (if permitted by that plan);
  • One-time lump sum payment in cash, payable in November 2014;
  • A new form of payment for their monthly benefit (joint & survivor annuity or single life annuity) if eligible; or
  • Take no action and continue to receive the same current monthly benefit in the same form as currently paid.

 

Eligible participants have from July 2 until August 22, 2014, to accept the offer.

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