BLUE BELL, PA — Unisys Corporation (NYSE: UIS) today announced it recently closed agreements with F&G Annuities & Life, Inc. (NYSE: FG) (“F&G”) to purchase group annuity contracts totaling approximately $265 million through which Unisys will transfer projected benefit obligations valued slightly less than this amount related to certain retirees under one of the company’s U.S. pension plans to F&G.
Unisys anticipates that this action will result in a one-time, non-cash, pre-tax settlement charge of approximately $193 million. Because the purchase will be made by the pension trust, there will be no impact on the company’s cash position.
This action brings the value of U.S. defined benefit pension obligations removed from the company’s balance sheet since 2020 to over $1 billion and global pension obligations to over $1.7 billion.
“Purchasing these annuity contracts demonstrates the company’s continued commitment to de-risking its pension obligations,” said Unisys Chief Financial Officer Deb McCann.
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 8,650 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 payments.
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