Visteon Announces Defined Benefit Lump Sum Offer
VAN BUREN TOWNSHIP, Mich., Sept. 19, 2012 /PRNewswire/ -- Visteon Corporation (NYSE: VC), announced a one-time lump sum payment option to certain former employees who are vested defined benefit plan participants not currently receiving monthly payments. At current interest rate levels, the lump sum settlements provide an opportunity for Visteon to significantly reduce liabilities and administrative costs.
The one-time payment option, to be funded with pension plan assets, will be offered from Oct. 1 to Nov. 9 to nearly 10,000 of the company's 20,000 total U.S. plan participants. Eligible participants will be given an option to select a lump sum payment or to maintain their existing benefit.
A one-time, non-cash year-end profit-and-loss charge will result from the lump sum payment. The total charge will depend upon participation rate, value of assets and discount rate at year-end.
Visteon is a leading global automotive supplier that designs, engineers and manufactures innovative climate, electronics and interior products for vehicle manufacturers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; the company has facilities in 28 countries and employs approximately 22,000 people. Learn more at www.visteon.com.
SOURCE Visteon Corporation