Unisys closes agreements with F&G Annuities & Life

Unisys announced it closed agreements with F&G Annuities & Life on March 28th to purchase group annuity contracts totaling almost $200M using plan assets. Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the company’s U.S. qualified pension plans to F&G. 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 3,800 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 benefit payments. Unisys anticipates this action will result in a first quarter one-time, non-cash, pre-tax settlement charge of approximately $129M. Since the purchase will be made by the pension trust, there will be no impact on the company’s cash position.