Motorola Solutions enters into third-largest U.S. pension buyout on record
Reprints
Motorola Solutions Inc., Schaumburg, Illinois, entered into a pension buyout agreement with Prudential Insurance Co. of America and will offer lump-sum payouts to terminated vested employees to reduce $4.2 billion in pension obligations, the company said in a filing with the U.S. Securities and Exchange Commission.
The buyout will total approximately $3 billion and cover approximately 30,000 Motorola Solutions retirees.
According to Prudential, this is the third-largest U.S. pension buyout to date, after General Motors Co. and Verizon Communications Inc.
Motorola also said it intends to contribute $1.1 billion to improve the funded status of its pension plans.
Separately, the firm said it is offering lump-sum distributions to 32,000 former employees that left the company before June 30 and have vested in the plan but haven't yet received benefits. The lump-sum program will be capped at $1 billion.
Timothy Pollard writes for Pensions & Investments, a sister publication of Business Insurance.
Read Next
-
PBGC proposing to require employer disclosure of lump-sum pension offers
The Pension Benefit Guaranty Corp. has disclosed that it intends to require employers to report to the agency offers they make to pension plan participants to convert their monthly annuity to a cash lump sum benefit.
