La-Z-Boy Inc., Monroe, Mich., plans to terminate its defined benefit plan for factory hourly employees in the fourth quarter of its 2019 fiscal year, the company disclosed in a 10-Q filing with the Securities and Exchange Commission on Tuesday.
The furniture maker's fiscal year ends on April 30, and the announcement of the plan's pending termination follows the freezing of benefit accruals plan on Dec. 31, 2018.
As part of the termination, the plan intends to contribute $9 million to $11 million from operating cash and settle the plan's liabilities through a lump-sum offer to participants and a later group annuity purchase.
As of April 28, 2018, the defined benefit plan had $107 million in assets and $108.8 million in projected benefit obligations, for a funding ratio of 98.3%.
Kathy Liebmann, company spokeswoman, would not provide further information.