West Pharmaceutical Services Inc., Exton, Pa., has terminated its U.S. defined benefit plan.
The company disclosed in its 10-Q filing with the SEC on Thursday that it had offered lump-sum payments to all current employees and former employees vested in the plan who had yet to receive benefits during the three months ended Sept. 30.
The company then purchased a group annuity contract from an insurance company to transfer remaining liabilities.
In the 10-Q filing, West Pharmaceuticals said it had approved the termination in 2021 and had received a favorable determination letter from the Internal Revenue Service prior to the third quarter of 2022. During the third quarter, the company had contributed $7 million to the DB plan to fund it fully for the completion of the termination action.
The company did not disclose the name of the insurance company, how much was transferred, and how much was distributed in lump sums.
As of Dec. 31, the company's global defined benefit plan assets totaled $249 million, while projected benefit obligations totaled $270 million, according to its most recent 10-K filing.
Also as of Dec. 31, the West Pharmaceutical Services Inc. Employees' Plan had $200 million in assets, according to the company's latest Form 5500 filing.
Company spokeswoman Michele Polinsky could not be immediately reached for further information.
