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Pension Funds

NCR purchases annuity to transfer $190 million in pension liabilities

NCR Corp., Duluth, Ga., purchased a group annuity contract from Principal Life Insurance Co. that will transfer about $190 million in U.S. pension obligations, NCR announced in a new release Friday.

The purchase affects about 6,000 retirees whose monthly pension benefit was $500 or less as of Jan. 1.

Principal is expected to begin making benefit payments in 2018.

As of Dec. 31, the technology company's U.S. defined benefit plan had $1.722 billion in assets and $2.185 billion in projected benefit obligations, for a funding ratio of 78.8%, according to its most recent 10-K filing. The plan was frozen in 2006.

Friday's announcement is the latest in a series of derisking strategies the company has taken over the past 10 years, the most recent of which includes a lump-sum offer to about 7,000 former employees vested in its U.S. pension plan that expired Oct. 20, and a separate group annuity contract with Principal Life Insurance Co. in 2014 to transfer about $160 million in pension liabilities, representing 4,500 retirees receiving benefits from its pension fund. That transaction affected retirees who began receiving benefits before Jan. 1, 1994.

A spokesman could not immediately be reached for additional information.