NCR Corp. said Tuesday it plans to offer lump-sum pension payments to an estimated 23,000 former employees as part of a plan to reduce its pension liability.
Former employees who have deferred monthly pension payments are eligible for the lump-sum payment. The projected cost of that liability represents about 33 percent of the company’s total U.S. pension liability, NCR said.
The plan includes a contribution to the company’s U.S. pension plan, although NCR did not disclose the amount of that contribution in its news release.
“These transactions will reduce the size of the U.S. plan, improve plan-funded status, free up cash flow, reduce pension-related expenses and lock in attractive financing rates,” said Bill Nuti, NCR’s chairman and chief executive.
Those eligible for the lump sum will receive details of the offer in coming weeks, the company said.
Dayton was home to NCR for 125 years before the company moved its headquarters to Duluth, Ga. in 2010.