Unisys Transfers $200 Million in U.S. Pension Obligations to New York Life
Unisys announced it has completed an agreement to transfer approximately $200 million in U.S. defined benefit pension obligations to New York Life via a group annuity contract. The transaction reduces the company's pension liabilities and future costs.
Unisys (NYSE: UIS) has finalized an agreement to transfer approximately $200 million of its U.S. defined benefit pension obligations to New York Life through the purchase of a group annuity contract. The company announced the closure of the deal today.
This move aligns with Unisys' capital structure and pension strategy, aiming to reduce its overall pension liabilities and lower future expenses associated with its U.S. pension obligations. The company seeks to fully remove these obligations.
The transaction involved purchasing a group annuity contract from New York Life. While Unisys is transferring these specific liabilities, the company will continue to administer its U.S. defined benefit program, but without the now-transferred obligations.
This transfer does not affect Unisys' reported funded pension liabilities, which remain unchanged. The company previously stated that its non-U.S. defined benefit programs are already fully funded and transferred.