Lucent Technologies Inc., Murray Hill, N.J., will use its $45 billion pension fund to finance most of the separation benefits, including severance packages, for the 15,000 to 20,000 employees the company intends to lay off. "The large majority (of the payments) would come from the pension plan, said Frank Briamonte, spokesman.
Figures arent available because the layoff plans, including the timetable, are still in development, he said. The separation benefits paid from the pension fund will include severance payments. "The pension plan is extremely well funded, he said. It had $26.1 billion in accrued liabilities as of Sept. 30.
Collette Chilton, chief investment officer, was unavailable to comment on how the payments would affect the plans investments.