Oct
06

United Technologies Cuts Pension Liabilities by $1.77 Billion

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  • Company strikes deal with Prudential to offload pension risks
  • Firm is also offering lump-sum payout to former U.S. employees

United Technologies Corp., the provider of products to the aerospace and building industries, is reducing its pension liabilities by $1.77 billion through the transfer of obligations to insurer Prudential Financial Inc. and a plan to offer lump-sum payouts to some retirees.

United Technologies will shift $775 million of those commitments, covering about 36,000 retirees and beneficiaries, to Prudential in a transaction that’s expected to close Oct. 12, the Farmington, Connecticut-based industrial company said Thursday in a statement. Also, 10,000 participants are expected to take lump-sum offers, reducing the company’s obligation by approximately $1 billion by Dec. 31. United Technologies said it expects to take a pretax settlement charge of about $400 million to $530 million in the fourth quarter…

United Technologies Cuts Pension Liabilities by $1.77 Billion

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