Visteon to offer lump-sum buyout to U.S. defined benefit participants

Visteon Corp., Van Buren Township, Mich., on Wednesday announced it will offer a lump-sum buyout option to almost half of the participants in the company’s U.S. defined benefit pension plans.

The election window for participants is Oct. 1 to Nov. 19 and covers “nearly 10,000 of the 20,000 total U.S. plan participants,” according to an 8-K filing with the SEC.

The offer is being made generally to “former hourly and salaried U.S. employees who have a vested benefit that is not in pay status,” spokesman Jim Fisher wrote in an e-mail.

The U.S. defined benefit plans were frozen Dec. 31, according to the company’s most recent 10-K filing. As of Jan. 1, the company began matching 100% of the first 6% of pay employees contribute to its U.S. defined contribution plan, the Visteon Investment Plan. The 401(k) plan had $428 million in assets as of Dec. 31, 2010, the most recent data available.

Visteon emerged from Chapter 11 bankruptcy protection on Oct. 1, 2010.

As of Dec. 31, the fair value of Visteon’s U.S. defined benefit plan assets was $1.15 billion with projected benefit obligations of $1.48 billion, for a funding ratio of 77.7%, according to the 10-K.