Unisys unloads $550 million in pension liabilities

Unisys Corp., Blue Bell, Pa., has transferred the assets of its Dutch subsidiary’s primary pension plan to De Nationale APF, a multiemployer pension plan in the Netherlands.

The transfer eliminates $550 million in pension liabilities from the information technology solutions company's balance sheet, Unisys spokesman Tony Buglione said in an email.

The transfer was effective May 1. It is the latest move in a long-term plan for Unisys to reduce its global pension liabilities by $1.2 billion.

"We look forward to achieving this goal, and we continue to consider and pursue additional actions to further reduce potential volatility and costs associated with our pension obligations," Unisys Chief Financial Officer Mike Thomson, said Wednesday in a news release.

In January, Unisys entered into an agreement to purchase a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer about $280 million in U.S. pension plan assets, and in December the company announced it made lump-sum payments totaling $276 million to former U.S. employees who accepted an offer from the company.

As of Dec. 31, international pension plan assets totaled $3.129 billion, while projected benefit obligations totaled $3.468 billion, for a funding ratio of 90.2%, according to the company's most recent 10-K filing with the SEC.

As of that same date, U.S. pension plan assets totaled $3.848 billion, while PBO totaled $4.545 billion, for a funding ratio of 84.7%, according to that 10-K filing.