Magnetek Inc., Menomonee Falls, Wis., announced Wednesday that more than two-thirds of terminated vested participants in its defined benefit plan to whom the company offered a lump sum this fall have taken the offer.
In a 10-Q filing with the Securities and Exchange Commission, the company announced preliminary results of the offer, showing 2,100 of the approximately 3,000 participants that received the offer have taken it.
The company had announced the offer in September was being done “to reduce the size of the plan, administration costs and volatility” and to make “future annuitization less costly.”
As of Dec. 31, the 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%. In September, the company said its shortfall was down to an estimated $40 million.
Marty J. Schwenner, vice president and chief financial officer, did not return a phone call by press time.