The pension covers some 35,000 participants, and the move could ultimately result in a cash gain of as much as $585 million that Kodak would use to reduce debt and invest in its business, executives said. A final decision on whether to terminate the pension plan is subject to board approval.
The company is moving forward with the effort to wring cash from its pension because the plan is significantly overfunded and the company feels the squeeze from high interest rates, executives said.
Kodak retirees would receive an annuity from an insurance company. Current employees, as well as former employees who haven't yet reached retirement, would be given an option to either receive a lump sum of their balance, or an annuity once they retire. Plan participants wouldn't see a change in the value of the benefits that have been promised to them, executives said.
Kodak's pension plan also holds hedge-fund investments with a net asset value of $917.2 million, and is in the process of redeeming a majority of those investments, according to the filing.
https://www.wsj.com/articles/kodak-prepares-to-terminate-u-s-pension-book-gain-of-more-than-500-million-d0cfb621