NCR Corp. said it will offer a voluntary lump–sum payment option to certain former employees, or their beneficiaries, who are deferred vested participants in its US qualified pension plan and who have not yet started monthly payments of their pension benefits.
The company, a computer hardware, software, and electronics company that makes ATMs and self-service kiosks, said the move will potentially reduce the size of its US pension plan, and will provide eligible participants with additional benefit payment options not normally available to them. It also said the lump–sum payment offer is being funded with existing plan assets, and that no additional contribution to the plan is required in connection with the offer.
NCR said it will send letters in the coming weeks to approximately 7,000 eligible deferred vested participants with details about the voluntary lump–sum offer. The options for eligible participants will include:
- A one-time lump–sum payment rolled over to an IRA or another employer’s qualified plan (if permitted by that plan).
- A one-time lump–sum payment rolled over to the NCR Savings Plan (for individuals with NCR Savings Plan accounts).
- A one-time lump–sum payment in cash payable in December 2017.
- A monthly annuity payment (single life or joint and survivor) commencing in December 2017.
- Take no action (remain subject to the plan’s normal payout options and normal benefit commencement dates).
Eligible participants will have from Sept. 6 until Oct. 20 to decide on the voluntary benefit payment options. Participants who are currently receiving monthly benefits from the US pension plan, participants who are current employees of NCR, and certain other US pension plan participants described in the lump–sum offer materials are not eligible for the offer.
NCR has hired Fidelity Investments to conduct the voluntary lump–sum offer for eligible participants. Fidelity is expected to send offer materials to each eligible participant by mail on Aug. 30.
The company also said that its pension plan participants will be able to respond online through a website dedicated to the offer, or by phone by contacting a telephone representative at a special call center. However, the website will not be accessible until the offer opens Sept. 6.