Hospira pays $22M in lump sums to former employees
Reprints
Hospira Inc., Lake Forest, Illinois, in the fourth quarter paid out $22 million in lump sums to former employees participating in one of its U.S. defined benefit plans who have yet to retire, the company announced Thursday in its 10-K filing.
The lump sums were the result of an offer made in October to terminated vested participants who have yet to retire in its Abbott/Hospira Transitional Annuity Retirement Plan. The offer window closed Oct. 31, and payments were made before the end of 2014.
As of Dec. 31, DB plan assets totaled $525.9 million, with $618.6 million in projected benefit obligations, for a funding ratio of 85%, according to the 10-K filing.
On Feb. 5, it was announced Pfizer Inc., New York, would acquire Hospira for $90 a share in cash, or about $17 billion, creating a company with an estimated $25 billion in retirement plan assets.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.
Read Next
-
NCR signs $160 million pension buyout deal
NCR Corp. on Wednesday said it is buying a group annuity to provide pension benefits to about 4,500 retirees and their beneficiaries.
Related Stories
-
-
PBGC to require employers to report pension risk transfer moves
-
Alcatel-Lucent to expand lump-sum offer to 32,000 more participants
