Ford (F) Offers Payouts to Salaried Retirees to De-Risk Pension Obligation
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In its ongoing effort to de-risk its pension obligation and get back its investment-grade credit rating, Ford (NYSE: F) is offering lump-sum payouts to future salaried retirees in the U.S., Reuters reported following a presentation to analysts Friday.
Ford is also exploring other options to decrease its pension risk and has already said it will sink $3.5 billion cash into its plans.
"While we have no plans to freeze or terminate our plans at this time, we monitor and evaluate the competitiveness of our benefits on a periodic basis," Ford Treasurer Neil Schloss said during the presentation.
Ford ended 2011 with its pension plans underfunded by $15.4 billion, up $3.9 billion from 2010.
Ford is also exploring other options to decrease its pension risk and has already said it will sink $3.5 billion cash into its plans.
"While we have no plans to freeze or terminate our plans at this time, we monitor and evaluate the competitiveness of our benefits on a periodic basis," Ford Treasurer Neil Schloss said during the presentation.
Ford ended 2011 with its pension plans underfunded by $15.4 billion, up $3.9 billion from 2010.
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