Under an agreement with Principal Life Insurance Co., a Principal company, NCR Corp. will purchase a single premium group annuity contract to secure approximately $190 million of benefits for approximately 6,000 former employees or their related beneficiaries whose monthly pension benefit under the plan on Jan. 1 was $500 or less.
"This group annuity contract purchase is consistent with our overall strategy to address our legacy pension liabilities," NCR Treasurer John Boudreau said in a press release. "Because this contract was purchased with existing plan assets, no additional funding of the plan was required for this purchase."
No action is required by affected former employees or their related beneficiaries at this time; they will receive details and instructions in letters and other materials to be sent In December, the release said.
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