Newell Rubbermaid Inc., Atlanta, announced in an SEC filing Tuesday it will offer a lump-sum payment to about 5,700 terminated vested participants in its frozen U.S. defined benefit plan.
Participants who take the offer will receive their lump sums by the end of 2014, said the 8-K filing with the Securities and Exchange Commission. The benefit obligation for these employees is about $200 million, which the company said is about 20% of its total obligation for its U.S. pension plan.
As of Dec. 31, plan assets totaled $880 million, and projected benefit obligations totaled $1.03 billion, for a funding ratio of 85%, according to the company’s most recent 10-K filing.
Phone calls to John K. Stipancich, executive vice president, general counsel and corporate secretary, executive leader EMEA and interim chief financial officer; and Nicole Quinlan, spokeswoman, were not immediately returned.
