This agreement reflects the company's continued focus on
reducing pension liabilities, volatility and costs while securing
retiree pension benefits with highly rated insurance
companies
BLUE
BELL, Pa., April 1, 2024 /PRNewswire/ -- Unisys
(NYSE: UIS) today announced it closed agreements with F&G
Annuities & Life, Inc. ("F&G") on March 28th to purchase group annuity
contracts totaling almost $200
million using plan assets. Unisys will transfer projected
benefit obligations valued at a similar amount related to certain
retirees under one of the company's U.S. qualified pension plans to
F&G.
As part of the transfer, F&G's insurance subsidiaries,
Fidelity & Guaranty Life Insurance Company and Fidelity &
Guaranty Life Insurance Company of New
York, will assume responsibility for pension benefits for
approximately 3,800 retirees and beneficiaries with monthly
benefits lower than certain thresholds. There will be no changes to
the gross amount, timing, or form of the monthly pension benefit
payments.
Unisys anticipates this action will result in a first quarter
one-time, non-cash, pre-tax settlement charge of approximately
$129 million. Since the purchase will
be made by the pension trust, there will be no impact on the
company's cash position.
About Unisys
Unisys is a global technology solutions
company that powers breakthroughs for the world's leading
organizations. Our solutions – cloud, data and AI, digital
workplace, logistics and enterprise computing – help our clients
challenge the status quo and unlock their full potential. To learn
how we have been helping clients push what's possible for 150
years, visit unisys.com and follow us on LinkedIn.
About F&G
F&G Annuities & Life, Inc. is
committed to helping Americans turn their aspirations into reality.
F&G is a leading provider of insurance solutions serving retail
annuity and life customers and institutional clients and is
headquartered in Des Moines,
Iowa.
Forward-Looking Statements
Any statements
contained in this release that are not historical facts are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995. Unisys cautions readers that the
assumptions forming the basis for forward-looking statements
include many factors that are beyond Unisys' ability to control or
estimate precisely and are made based upon management's current
expectations, assumptions and beliefs as of this date concerning
future developments and their potential effect upon Unisys. There
can be no assurance that future developments will be in accordance
with management's expectations, assumptions and beliefs or that the
effect of future developments on Unisys will be those anticipated
by management. Forward-looking statements in this release include
the impact on the U.S. pension. Additional information and factors
that could cause actual results to differ materially from Unisys'
expectations are contained in Unisys' filings with the U.S.
Securities and Exchange Commission (SEC), including Unisys' Annual
Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K, and other SEC filings, which
are available at the SEC's web site, http://www.sec.gov.
Information included in this release is representative as of the
date of this release only and while Unisys periodically reassesses
material trends and uncertainties affecting Unisys' results of
operations and financial condition in connection with its
preparation of management's discussion and analysis of results of
operations and financial condition contained in its Quarterly and
Annual Reports filed with the SEC, Unisys does not, by including
this statement, assume any obligation to review or revise any
particular forward-looking statement referenced herein in light of
future events.
RELEASE NO.: 0401/9941
Unisys and other Unisys products and services mentioned herein,
as well as their respective logos, are trademarks or registered
trademarks of Unisys Corporation. Any other brand or product
referenced herein is acknowledged to be a trademark or registered
trademark of its respective holder.
UIS-C
View original content to download
multimedia:https://www.prnewswire.com/news-releases/unisys-transfers-approximately-200-million-of-its-us-defined-benefit-pension-obligations-to-fg-through-the-purchase-of-group-annuity-contracts-302104248.html
SOURCE Unisys Corporation