Unisys Transfers $200 Million Pension Obligations to New York Life

Unisys Corporation completed an agreement with New York Life Insurance Company to transfer approximately $200 million in pension obligations through a group annuity contract purchase. The transaction shifts the projected benefit obligations for roughly 1,700 retirees and beneficiaries under a U.S. qualified pension plan to the insurer.

This transfer applies to individuals with monthly benefits below specific thresholds, though the amount, timing, and form of payments for the beneficiaries remain unchanged. Unisys used plan assets for the purchase, which resulted in no impact on its cash position. However, the company expects to record a one-time, non-cash, pre-tax settlement charge of approximately $150 million in the third quarter of 2026.

This action brings the cumulative reduction in U.S. qualified defined benefit pension plan liabilities for Unisys to $520 million since July 2025. The company is moving toward a total reduction target of $600 million and anticipates one further settlement by January 2027.