Alexander & Baldwin Inc., Honolulu, will terminate its two pension plans later this year.
The real estate company's board of directors voted Tuesday to terminate its two plans, the A&B Retirement Plan for Salaried Employees of Alexander & Baldwin LLC and the Pension Plan for Employees of A&B Agricultural Cos., according to its 10-K filing Friday with the SEC.
The terminations of the plans will be effective May 31, the filing said. A&B will provide a window for participants to elect to receive a lump sum or a monthly payment from an insurance plan from which the company will purchase a group annuity contract.
Upon completion of the termination in 2022, A&B said it expects to make a cash contribution of $25 million to $40 million to the plans.
As of Dec. 31, pension plan assets totaled $201 million, while projected benefit obligations totaled $219 million, for a funding ratio of 91.8%.
Betty Gamundoy, employee benefits manager, could not be immediately reached for further information.