NCR Corporation has entered into an agreement with Principal Life Insurance Company, in accordance with the selection made by the fiduciary of its U.S. qualified pension plan, under which NCR purchased a single premium group annuity contract from The Principal. The contract secures approximately $160 million of benefits for about 4,500 former employees or their related beneficiaries who commenced monthly pension benefits under the plan before January 1, 1994.
“This group annuity contract purchase is part of our pension transformation and is consistent with our overall strategy to address our legacy issues,” says John Boudreau, NCR treasurer. “Since this contract was purchased with existing plan assets, no additional funding of the plan was required for this purchase. The plan’s funded status is expected to remain materially unchanged as a result of this group annuity contract purchase.”
The group annuity contract does not affect active employees, former employees who have not commenced monthly benefits under the plan, or former employees or their beneficiaries who commenced monthly benefits under the plan on or after January 1, 1994. It provides the same rights to future payments, such as survivor benefits, that are currently provided under the terms of the plan.
NCR said additional details will be provided to affected participants and beneficiaries in March 2015.