International Paper Co., Memphis, Tenn., is offering a lump-sum payment window to certain participants in one of its U.S. defined benefit plans, its recent 10-K filing states.
The company announced the window, which expires on April 29, for terminated vested participants of the Retirement Plan of International Paper Co., who have yet to retire.
Payments to participants who accept the offer are expected to be made on or before June 30, according to the 10-K filing. The filing did not identify the number of participants to whom the offer was given, but said they represent $3 billion in liabilities and the company's expectation is approximately $1.5 billion in payments will be made.
As of Dec. 31, the company's U.S. defined benefit plan assets totaled $10.923 billion, with projected benefit obligations of $14.438 billion, for a funding ratio of 75.7%.
Tom Ryan, company spokesman, could not immediately provide further information.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.
Barnes Group Inc. is offering 1,300 former employees the opportunity to convert their future monthly pension annuity into a cash lump sum.