US - Unisys is set to freeze its current defined benefit plan at year-end 2006 in a move that will save the company US$700m in the next decade and $45m in the first quarter of 2007 alone.
The shift will not affect retirement benefits already accrued before December 31 2006, with Unisys announcing plans to beef up the company’s 401(k) offering.
Unisys said it would redesign the company’s Savings Plan to increase the company-funded stock-based matching contribution to 100% of the first 6% of eligible pay contributed by participants, significantly higher than the current 50% of the first 4% of eligible pay.
Unisys CEO Joseph McGrath [pictured] said of the changes: “We think they have struck the appropriate balance between controlling our pension costs and continuing to help our employees prepare for retirement.”
Based on the changes to the US plans, Unisys’ 2006 pension expense worldwide are expected to be around $168m, down from $181 million in 2005. “Contributing to our employees’ retirements while keeping Unisys competitive in the marketplace is an issue we have been giving thoughtful consideration to for some time,” added McGrath.
By Damian Clarkson
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.