International Paper Co., Memphis, Tenn., is offering a lump-sum payment window to certain participants in one of its U.S. defined benefit plans, its recent 10-K filing states.
The window, which expires on April 29, has been offered to about 47,000 terminated vested participants of the Retirement Plan of International Paper Co., who have yet to retire, said Tom Ryan, company spokesman. Both salaried and hourly former employees have been sent the offer, he added.
Payments to participants who accept the offer are expected to be made on or before June 30, according to the 10-K filing. The filing said the participants represent $3 billion in liabilities and the company's expectation is approximately $1.5 billion in payments will be made.
As of Dec. 31, the company's U.S. defined benefit plan assets totaled $10.923 billion, with projected benefit obligations of $14.438 billion, for a funding ratio of 75.7%.