Unisys Transfers a Portion of its U.S. Defined Benefit Pension Obligations to F&G Through $250 Million of Group Annuity Contracts
BLUE BELL, Pa., Nov. 27, 2023 /PRNewswire/ -- Unisys (NYSE: UIS) today announced it has closed agreements with F&G Annuities & Life, Inc. (NYSE: FG) ("F&G") to purchase group annuity contracts totaling approximately $250 million through which Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the company's U.S. pension plans to F&G.
- There will be no changes to the gross amount, timing, or form of the monthly pension payments.
- Unisys anticipates this action will result in a one-time, non-cash, pre-tax settlement charge of approximately $244 million.
- Since the purchase will be made by the pension trust, there will be no impact on the company's cash position.
- "Purchasing these annuity contracts demonstrates the company's continued commitment to de-risking its pension obligations.," said Unisys Chief Financial Officer Deb McCann.