Kaydon offers lump-sum/annuity choice to certain former employees

Kaydon Corp., Ann Arbor, Mich., sent offer letters in the third quarter to a selected number of former non-retiree employees to receive lump-sum payments or immediate annuities, according to an 8-K filing with the SEC on Friday.

The engineering company said in the filing that “this derisking of our pension obligations will reduce future pension liabilities proportionately.”

As of Dec. 31, Kaydon's U.S. defined benefit plan assets totaled $109.7 million, with $142.8 million in projected benefit obligations, for a funding ratio of 76.8%.

Timothy J. Heasley, senior vice president and CFO, did not return a phone call by press time seeking further details.