Unisys (NYSE: UIS) has closed an agreement with New York Life Insurance Company to purchase a group annuity contract totaling approximately $200 million, transferring projected benefit obligations related to certain retirees under one of its U.S. qualified pension plans, according to a company statement.

The transaction covers approximately 1,700 retirees and beneficiaries with monthly benefits below certain thresholds. New York Life will assume responsibility for providing pension payments to those individuals, with no changes to the gross amount, timing, or form of monthly benefits.

The purchase will be funded using pension plan assets, meaning there will be no impact on Unisys' cash position. The company expects to record a one-time, non-cash, pre-tax settlement charge of approximately $150 million in the third quarter of 2026.

In July 2025, Unisys outlined a capital structure and pension strategy that targeted a $600 million reduction in U.S. qualified defined benefit pension plan liabilities. Including this latest transaction, the company has achieved a cumulative reduction of approximately $520 million since that time. Unisys anticipates completing one additional settlement by January 2027, which it said would bring the total reduction closer to its $600 million target.