Equifax Inc. disclosed Oct. 1 that it will offer the opportunity to convert future annuities to either a lump-sum benefit or a reduced annuity that would begin in December to about 3,500 former employees who are eligible for but not yet receiving monthly pension benefits.
The offer is being extended to those individuals who terminated employment prior to Jan. 1, 2012, but have not yet started to receive benefits.
The benefit liability associated with that group represents about 20 percent of Equifax's total pension plan liabilities, which were about $630 million as of Dec. 31, 2011, the Atlanta-based company said in a filing with the U.S. Securities and Exchange Commission.
Eligible participants will have from Oct. 8 to Nov. 16 to make elections, which are voluntary.
The payments will be funded with plan assets.
Other employers that have made annuity-to-lump-sum benefit conversion offers in recent weeks include Visteon Corp. and The New York Times Co.
Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management. Comment below or email editors@workforce.com.
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