What Are Some Facts About the NCR Pension Buyout?


Quick Answer

One fact about the NCR pension buyout is that in 2014, an approximate 4,500 plans were bought out, according to BusinessInsurance.com. Another fact is that the buyout involved $160,000,000.

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Full Answer

As of 2014, the buyout was the third for NCR as the company aimed to reduce their pension plan size by striking a deal with Principal Life Insurance. NCR offered over 20,000 retirees a lump sum payment. The lump sum was only offered to those that retired between 1994 and 2014. In 2013, NCR made an agreement over an annuity buyout with Pension Insurance Corp. The buyout is estimated to be complete by the beginning of 2016 as stated by PIOnline.com.

The previous buyout attempt took place in 2012 as terminated vested participants were offered a lump sum payment. This affected nearly 23,000 people. Prior to that, in 2004, the company greatly reduced its pension plans and by 2007, the plans were completely frozen. However, they did beef up the employees' 401K plans.

Despite the buyouts, the pension plan amounts remain at fair value.

Because of the repeated deals and buyout plans that the company has made, the stocks have continued to rise. NCR is a Georgia based company that specializes in technology.

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