“This action will provide eligible participants with additional benefit payment options not normally available to them and will potentially reduce the size of the U.S. plan,” NCR said in its announcement this week. “The lump sum payment offer is being funded with existing plan assets and no additional contribution to the plan is required in connection with this offer.”
In coming weeks, NCR said it will contact about 7,000 eligible deferred vested participants with a personalized letter about the offer. The company said it expects to complete lump sum payments under the voluntary lump sum offer by year end 2017.
NCR has wrestled with pension issues for years. In 2004, the company closed its U.S. pension plans to new participants and froze the pension benefits of plan participants under the age of 40. Then in 2006, it ended defined-benefit pension plans altogether, increasing contributions to employee 401(k) plans.
Eligible participants will have from Sept. 6 until Oct. 20 to make a decision on whether to accept the lump-sum payment. Participants with questions are invited to visit the NCR website http://www.ncr.com/ncr-lump-sum-offer for more details on the offer.
NCR was born and based in Dayton for more than a century before it moved its headquarters and most of its employees to the Atlanta area in 2008 and 2009.