TYPE OF PLAN: Traditional Defined Benefit – 17,000 employees affected
DATE ANNOUNCED: March 22, 2006
DATE EFFECTIVE: Dec. 31, 2006
DESCRIPTION OF FREEZE: Partial Freeze. On Dec. 31, most U.S. employees and senior management will stop accruing benefits in their defined benefit plan.
PLAN SOLVENCY: At year end 2005, U.S. defined benefit pension plan assets totaled $4.6 billion. Accumulated benefit obligations of the plan were $4.8 billion.
REPORTED FINANCIAL IMPLICATION: The pension plan changes will result in a pretax savings of $45 million in the first quarter of 2006 and are expected to reduce retirement costs by roughly $700 million over the next decade.
NEW ARRANGEMENTS FOR EMPLOYEES: Unisys will increase the company-funded stock-based matching contribution to its defined contribution savings plan from the existing 50% of the first 4% of eligible pay to 100% of the first 6% of eligible pay.
BACKGROUND: Unisys is a worldwide technology services and solutions company. Unisys consultants work in the fields of consulting, systems integration, outsourcing, infrastructure and server technology.
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