Hospira Inc., Lake Forest, Ill., in the fourth quarter paid out $22 million in lump sums to former employees participating in one of its U.S. defined benefit plans who have yet to retire, the company announced Thursday in its 10-K filing.
The lump sums were the result of an offer made in October to terminated vested participants who have yet to retire in its Abbott/Hospira Transitional Annuity Retirement Plan. The offer window closed Oct. 31, and payments were made before the end of 2014.
The number of participants who were offered and then accepted the lump sums could not be learned by press time.
As of Dec. 31, DB plan assets totaled $525.9 million, with $618.6 million in projected benefit obligations, for a funding ratio of 85%, according to the 10-K filing.
On Feb. 5, it was announced Pfizer Inc., New York, would acquire Hospira for $90 a share in cash, or about $17 billion, creating a company with an estimated $25 billion in retirement plan assets.
Stacey Eisen, Hospira spokeswoman, did not return phone calls by press time.
