LKQ Corp., Chicago, plans to terminate its U.S. defined benefit plan next year, the company disclosed in a 10-Q filing with the SEC on Friday.
In the filing, the company announced it approved on June 28 an amendment to terminate its primary defined benefit plan, pending regulatory approval, and freeze the plan on June 30.
The termination, which the company expects to be completed in 2020, will result in lump-sum offers to eligible participants, followed by a group annuity purchase from a third-party annuity provider, the filing said.
The filing said the plan is underfunded by $3 million but did not provide further information on assets and liabilities.
According to the company's most recent 10-K filing, global defined benefit plan assets totaled $92 million, while projected benefit obligations totaled $201 million, for a funding ratio of 45.3%. The filing did not provide information on assets by region.
Joseph P. Boutross, vice president, investor relations, could not be immediately reached to provide further information.