Magnetek offers pension plan participants lump sum conversion option
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Magnetek Inc. disclosed Tuesday that it is offering to 35% of its 8,000 defined benefit pension plan participants the option to convert their monthly annuity benefit to a cash lump sum benefit.
“The intent is to reduce the size of the plan, administration costs, and volatility,” making future annuitization less costly, the Menomonee Falls, Wisconsin-based based provider of digital power control systems company said in an 8-K filing with the Securities and Exchange Commission.
Magnetek also said in its filing that it intends to terminate the plan, which it froze in 2003 “when economically feasible.”
As of Dec. 29, 2013, the plan was underfunded by about $50 million, with $160.6 million in assets and $209.1 million in liabilities, according to the company's 2013 10-K report.
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