Yum! Brands Inc., Louisville, Ky., is offering some former employees in its U.S. pension plan the option of receiving a lump sum or monthly annuity payments beginning in December, the company announced in a 10-Q filing with the SEC on Tuesday.
The offer was made to “certain” former employees who are vested in the company's U.S. pension plan but have yet to retire, the 10-Q filing said. The offer, which was made on Sept. 8, expires on Oct. 25. The company did not say how many participants were given the offer nor how much in pension liabilities they represented.
“The payout can be in the form of a lump-sum payment equal to the present value of the participant's pension benefit or through a monthly annuity,” the filing said.
The company made a similar offer in the fall of 2012 to former employees who were vested but had yet to retire and had not said how many former employees took the offer.
As of Dec. 26, U.S. pension plan assets totaled $1 billion, while projected benefit obligations totaled $1.13 billion, for a funding ratio of 88.5%.
Spokeswoman Laurie Schalow did not respond to requests for further information by press time.