Unisys Falls in Line of Companies Freezing Pensions

March 22, 2006 (PLANSPONSOR.com) - Unisys Corporation announced that it will cease accruals to its US defined benefit pension plans effective December 31, 2006, and will close the plans to new hires after that date.

According to the announcement , the technology company will change its defined contribution Unisys Savings Plan to increase the company-funded stock-based matching contribution to 100% of the first six percent of eligible pay contributed by participants, up from the current 50% of the first four percent of eligible pay contributed by participants.

Unisys made the changes to its US plans to provide a competitive retirement program while controlling the level and volatility of retirement costs, the announcement said. The company expects the changes to reduce retirement-related expenses by approximately $700 million over the next decade, based on current interest rates and actuarial assumptions.

Joseph McGrath, Unisys president and chief executive officer, said in the announcement, “We think these changes have struck the appropriate balance between controlling our pension costs and continuing to help our employees prepare for retirement.”

Company data on how much Unisys said it should save by the pension changes is here .