VAN BUREN TOWNSHIP, Mich.,
July 16, 2014 /PRNewswire/ -- Visteon
Corporation (NYSE:VC) today announced that it has entered into an
agreement to transfer certain U.S. pension assets to Prudential
Insurance Company of America, a subsidiary of Prudential Financial,
Inc. (NYSE: PRU), to settle approximately $350 million of Visteon's $1.1 billion in outstanding U.S. pension
obligations.
Under the agreement, the Visteon Pension Plan will purchase a
group annuity contract from Prudential, which will then assume the
obligation to make future annuity payments to certain Visteon
hourly retirees.
The transaction is designed to further Visteon's objective of
reducing risk in the pension plan and better managing the ongoing
cost volatility of such plans, while continuing to meet its
obligation to all current participants. The annuity purchase
requires no immediate cash contribution from the company and will
be funded by existing plan assets.
The pension transfer will not change the amount of the monthly
pension benefit received by affected retirees and surviving
beneficiaries. The group annuity contract includes an irrevocable
commitment by Prudential to make annuity payments to affected
retirees covered under the contract.
Towers Watson acted as the
company's consultant for this transaction. Fiduciary Counselors
Inc. served as an independent fiduciary in the selection
process.
About Visteon
Visteon is a global automotive supplier
delivering value for vehicle manufacturers and shareholders through
two high-growth core businesses: automotive cockpit electronics and
thermal management. Visteon owns 70 percent of Halla Visteon
Climate Control Corp., the world's second largest provider of
vehicle thermal management solutions. Visteon designs, engineers
and manufactures innovative components and systems for virtually
every vehicle manufacturer worldwide. With corporate offices in
Van Buren Township, Mich. (U.S.);
Shanghai, China; and Chelmsford, UK; Visteon has facilities in 32
countries and employs about 29,000 people. Visteon had sales of
$7.4 billion in 2013. Learn more at
www.visteon.com.
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SOURCE Visteon Corporation