(RTTNews.com) – United Technologies Corp. ( UTX ) pronounced it skeleton to revoke a altogether distance of a grant obligations by about $1.77 billion in 2016.
The Farmington, Connecticut-based builder of Pratt Whitney engines as good as Otis elevators skeleton to send government of a grant skeleton for retirees to a third-party and offer one-time pile sum payments instead of monthly grant payments.
The diversified firm expects to catch a one-time pretax grant allotment assign of $400 million to $530 million in a fourth entertain of 2016. As of Jun 30, a association had destiny grant and post-retirement advantage obligations of $5.71 billion.
The transaction is approaching to tighten on Oct 12, with a squeeze of a organisation payments agreement from Prudential, that already administers advantage payments for United Technologies retirees.
Prudential, that was comparison after a rival behest process, will assume a requirement and executive shortcoming for retirement advantages due to about 36,000 United Technologies retirees as good as flourishing beneficiaries who now accept a advantage of $300 per month or reduction from a plans.
United Technologies remarkable that a monthly payments to a retirees and beneficiaries enclosed in this organisation will not be reduced and they will shortly accept minute information packages.
In addition, United Technologies has implemented a module that offers certain former U.S. employees or beneficiaries with a vested grant advantage an choice to take a pile sum payment, instead of destiny monthly grant payments.
Upon execution of this program, a association expects about 10,000 participants to take a pile sum offer.
Payments will be paid from a retirement skeleton during late 2016. This movement is approaching to revoke United Technologies’ grant advantage obligations by about $995 million by year-end 2016.
These actions are partial of United Technologies’ altogether devise to de-risk a grant plans.
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