Philips to Transfer U.K. Defined-Benefit Pension Plan to Insurer
05 Novembro 2015 - 6:50AM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM--Royal Philips NV (PHIA.AE) said Thursday it reached a
deal to transfer its defined-benefit pension plan in the U.K. to a
pension buyout specialist, a move that will result in a charge
hundreds of million euros in the fourth quarter.
The Dutch electronics group said the trustees of its U.K.
pension fund reached a deal to buy a group annuity contract from
the U.K.'s Pension Insurance Corp., in a deal that will transfer
GBP2.6 billion ($4 billion) in defined-benefit obligations to the
insurer.
Philips said it expects to make a final contribution to the
pension plan of around GBP225 million as part of the deal,
resulting in a pretax charge of around EUR314 million ($341
million) in the fourth quarter.
Philips said the transaction will reduce its total
defined-benefit obligations by EUR3.9 billion to around EUR4.5
billion, as it seeks to shift away from offering relatively
expensive guaranteed retirement benefits. Last month, the Dutch
company reached a similar deal in the U.S. by transferring its
defined-pension obligations for around 17,000 former employees to
three insurance companies.
Write to Maarten van Tartwijk at Maarten.VanTartwijk@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 05, 2015 03:35 ET (08:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Koninklijke Philips NV (EU:PHIA)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Koninklijke Philips NV (EU:PHIA)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024