HP Inc., Palo Alto, Calif., is offering a lump-sum payment to former employees in its U.S. pension plan, the company disclosed in a 10-Q filing with the SEC.
The offer window, which began June 3, gives "certain terminated vested participants" in the HP Inc. Pension Plan to take a one-time voluntary lump-sum payment for the total present value of their future benefits, according to the June 5 filing.
The window for the lump-sum election closes on July 15 and payments from plan assets to those who elect the lump sum will be made in the fourth quarter of the current fiscal year, which begins Aug. 1 and ends Oct. 31.
As of Oct. 31, HP's U.S. pension plan assets totaled $12.017 billion, while projected benefit obligations totaled $13.191 billion, for a funding ratio of 91.1%, according to the company's most recent 10-K filing.
The HP Inc. Pension Plan had $10.4 billion in assets as of Oct. 31, 2018, according to the company's most recent Form 5500 filing.
HP officials could not be immediately reached for further information.