NCR Continues to Execute on Pension Transformation Strategy
Company further reduces pension plan liability while preserving benefits with agreement to secure benefits by annuity purchase
NCR Corporation (NYSE: NCR) announced today that, in accordance with the selection made by the fiduciary of its U.S. qualified pension plan (the “Plan”), the Company has entered into an agreement (the “Agreement”) with Principal Life Insurance Company (“The Principal”). Pursuant to the Agreement, the Plan purchased a single premium group annuity contract from The Principal in order to secure approximately $160 million of benefits for approximately 4,500 former employees or their related beneficiaries who commenced monthly pension benefits under the Plan before January 1, 1994. This group annuity contract does not affect active employees, former employees who have not commenced monthly benefits under the Plan, or former employees or their beneficiaries who commenced monthly benefits under the Plan on or after January 1, 1994.
“This group annuity contract purchase is part of our pension transformation and is consistent with our overall strategy to address our legacy issues,” said John Boudreau, NCR Treasurer. “Since this contract was purchased with existing Plan assets, no additional funding of the Plan was required for this purchase. The Plan’s funded status is expected to remain materially unchanged as a result of this group annuity contract purchase.”
This group annuity contract purchase is not expected to have a material impact on NCR’s financial results. Any impact of this purchase will be included in the year-end 2014 mark-to-market adjustment. NCR anticipates that the single premium group annuity contract will be issued by The Principal in 2015.
In March 2015, additional details will be provided in letters and other materials that will be sent to affected former employees or their beneficiaries who commenced monthly benefits under the Plan before January 1, 1994. The amount of the future monthly benefit payment for each of these individuals under this group annuity contract will equal the amount of such individual’s monthly benefit payable under the terms of the Plan.
Additionally, this group annuity contract provides the same rights to future payments, such as survivor benefits, that are currently provided under the terms of the Plan. No action will be required of any former employee or beneficiary in order to continue to receive such benefits. More information is available by visiting the NCR website at: http://www.ncr.com/home/pension-transformation. Participants may also access Plan information through the NCR Benefits Service Center website at www.netbenefits.com or by telephone at 1-800-245-9035. General information about The Principal can be found on its website at http://www.principal.com/about/index.htm.
About NCR Corporation
NCR Corporation (NYSE: NCR) is the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables more than 485 million transactions daily across retail, financial, travel, hospitality, telecom and technology, and small business. NCR solutions run the everyday transactions that make your life easier.
NCR is headquartered in Duluth, Georgia with approximately 29,000 employees and does business in 180 countries. NCR is a trademark of NCR Corporation in the United States and other countries. The company encourages investors to visit its web site which is updated regularly with financial and other important information about NCR.
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