Charles River Laboratories International Inc., Wilmington, Mass., is terminating its U.S. pension plan, the company disclosed in a 10-K filing with the SEC on Wednesday.
The process to terminate began Jan. 31, and the company is changing its target allocation to 100% fixed income to match its assets with its liabilities in preparation for the termination, which is expected to take place over the next two years, the filing said.
The company said it might make contributions to the plan to settle the remaining liabilities and will be offering lump sums to participants, after which the plan will purchase a group annuity contract to transfer the liabilities of participants who do not elect a lump sum.
As of Dec. 31, the company's combined U.S. pension plan, deferred compensation plan and supplemental life insurance retirement plan assets totaled $306 million, while projected benefit obligations totaled $363 million, for a funding ratio of 84.3%. The company did not break out their U.S. pension plan assets in the 10-K filings, but had reported $81 million in that plan as of Dec. 31, 2017, according to the company's most recent Form 5500 filing.
A spokeswoman said in an email the company would not comment beyond what was disclosed in the filing.