Kodak mulls ending pension plan post asset sale
Eastman Kodak Co. is considering making some changes to its pension plan after finding itself with more money in the fund than needed, according to a recent SEC filing. The company has decided to sell off $764.4 million in hard-to-sell pension assets to the Mastercard Foundation for $550.6 million. There may be additional sales to other investors, which could result in Kodak pocketing between $530 and $585 million after accounting for tax implications.
This move has sparked discussions within Kodak about potentially terminating the pension plan altogether. While this may sound drastic, it’s a common strategy for companies in Kodak’s position to ensure their pension funds are managed efficiently and effectively.
By selling off these assets and potentially terminating the pension plan, Kodak is taking steps to streamline its financial operations and ensure that its pension fund is in good shape for the long haul. This strategy can also have positive impacts on the company’s bottom line and overall financial health.
It’s important to note that these types of actions are not uncommon in the business world. Companies regularly assess their pension plans and make adjustments as needed to ensure they are in the best position to support their retirees and manage their financial obligations.
While the details are still being finalized, it’s clear that Kodak is taking proactive steps to address its overfunded pension plan and set itself up for future financial success. This move may benefit both the company and its current and future retirees in the long run.
