Kimberly-Clark Corp., Dallas, is offering lump-sum payments to 10,000 former employees with deferred vested benefits from the company's frozen defined benefit plan, according to the company's third-quarter earnings statement released Wednesday.
The liabilities associated with the former employees are about $570 million, or about 15% of the company's benefit obligation for its U.S. defined benefit plan. Participants have until Nov. 21 to accept the lump-sum offer, and the assets will be distributed by the end of the year.
Kimberly-Clark made the offer to reduce the size and future volatility of the U.S. DB plan, according to the earnings statement.
The U.S. pension plan had $3.48 billion in assets as of Dec. 31, according to a Form 5500 filing. The plan was frozen in 2009. According to the company's earnings statement, the plan has about $3.8 billion in liabilities for a funded status of 91.6%.