Unum contributes $50 million in Q2, plans to freeze U.S. pension plan
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Chattanooga, Tenn.-based Unum Group contributed $50 million to its U.S. defined benefit pension plan in the second quarter as part of the company's efforts to freeze the plan at the end of 2013.
The contribution was voluntary, according to a 10-Q filing with the Securities and Exchange Commission on Tuesday.
The insurer had announced in June that it would freeze its U.S. defined benefit pension plan effective Dec. 31. Beginning Jan. 1, 2014, the company will increase its 401(k) plan match to 5% of base salary from 3% and add a new nonelective contribution of 4.5% of earnings for all eligible employees.
As of Dec. 31, 2013, the fair value of plan assets for the U.S. plan totaled $1.35 billion and projected benefit obligations totaled $1.97 billion, for a funded ratio of about 69%, according to its most recent annual report. The company contributed $57.5 million to the plan in 2012.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.
