Unisys Transfers $200 Million Pension Obligations to New York Life
Unisys has transferred approximately $200 million in U.S. defined benefit pension obligations to New York Life through the purchase of a group annuity contract, reducing its liabilities and future costs associated with these retirement benefits. This move aligns with Unisys' strategy outlined in July 2025 to reduce U.S. qualified pension plan liabilities by $600 million. The transaction brings cumulative reductions to about $520 million since that time, with one more settlement expected before January 2027. Under the agreement, New York Life will assume responsibility for providing monthly benefits to around 1,700 retirees and beneficiaries whose payments are below certain thresholds. There will be no changes in benefit amounts or timing due to New York Life's financial strength. Unisys expects a one-time non-cash pre-tax settlement charge of about $150 million in the third quarter of 2026; however, since it is funded by pension trust assets, there will be no impact on the company’s cash position.
Topics: annuity purchase deleveraging pensions