BLUE BELL, PA — Unisys (NYSE: UIS) last week completed agreements with F&G Annuities & Life, Inc. to transfer roughly $320 million in pension obligations through the purchase of group annuity contracts, marking the first phase of a broader effort to reduce its pension liabilities by about $600 million through 2026.
The deal, finalized last week, shifts responsibility for the benefits of approximately 3,150 retirees and beneficiaries to F&G subsidiaries, Fidelity & Guaranty Life Insurance Company and Fidelity & Guaranty Life Insurance Company of New York. The affected participants, whose monthly pensions fall below specified thresholds, will see no changes in the amount, timing, or form of their benefits.
The annuity purchase was funded using plan assets, with no effect on Unisys’ cash position. However, the company expects to record a one-time, non-cash, pre-tax settlement charge of about $228 million in the third quarter of 2025.
This transaction represents a key step in Unisys’ long-term strategy to manage and de-risk its pension obligations, following the framework outlined in its July 2025 investor presentation. By offloading a portion of its defined benefit liabilities, the company aims to strengthen its balance sheet while maintaining uninterrupted payments to retirees.
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