Hospira pays $22M in lump sums to former employees

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.