Rock-Tenn Co., Norcross, Ga., has settled $249 million in projected benefit obligations through a voluntary lump-sum offer to former employees who have yet to retire, said John Stakel, senior vice president and treasurer.
In July, an offer letter was sent to more than 9,000 former employees who were participants in the Rock-Tenn Co. Consolidated Pension Plan, Rock-Tenn Co. Pension Plan for Certain Salaried Employees and RTS Packaging LLC Consolidated Pension Plan.
At the time, the company estimated that former employees representing between $200 million and $300 million in liabilities would accept the offer. About 5,000 of the former employees took the offer, Mr. Stakel said.
The company is in the midst of a lump-sum offer window to former employees who have yet to retire who are vested in the Rock-Tenn Co. Pension Plan for Certain Hourly Employees. That offer closes Monday, Mr. Stakel said. Payouts from that offer should occur in December. The company hopes to settle between $150 million and $175 million in obligations with this payout.
The company also announced it plans to contribute $160 million to its defined benefit plans in fiscal year 2015.
As of Sept. 30, defined benefit plan assets totaled $3.478 billion and projected benefit obligations totaled $4.57 billion, for a funding ratio of 76.1%.