While Motorola Solutions Inc.’s activity last week was the most notable, three other companies also announced lump-sum offers.
American Axle & Manufacturing Holdings Inc., Detroit, said it will open a lump-sum window from Oct. 2 through Nov. 14 for about 6,000 terminated vested participants, with cash payments scheduled for December.
As of Dec. 31, AAM’s U.S. and U.K. defined benefit pension funds had a total of $713 million in assets and $755 million in projected benefit obligations, for a 94.4% funding ratio, according to the company’s most recent 10-K filing. The company does not break out its U.S. assets.
Magnetek Inc., Menomonee Falls, Wis., also announced it is in the midst of a lump-sum offer window to approximately 3,000 terminated vested participants who have yet to retire. The window ends in late October and payments should take place in early December, said Marty Schwenner, chief financial officer. Mr. Schwenner said the lump-sum offer was made partly because the plan is oversized in comparison to the size of the company due to past company divestitures.
As of Dec. 31, Magnetek’s defined benefit plan had $161 million in assets and $209 million in projected benefit obligations, according to the company’s most recent 10-K filing, giving it a funding ratio of 77%.
Newell Rubbermaid Inc., Atlanta, announced it will offer a lump-sum payment to about 5,700 terminated vested participants in its frozen U.S. defined benefit plan, which represent about $200 million in pension obligations.
As of Dec. 31, Newell Rubbermaid’s U.S. defined benefit plan assets totaled $880 million while projected benefit obligations totaled $1.03 billion, for a funding ratio of 85%, according to the company’s most recent 10-K filing.