ROCHESTER, N.Y. \u2014 Kodak has completed the reversion of its pension program, saying it has freed over $1 billion in excess pension assets to help pay off its debts and strengthen its balance sheets.<\/p>\n
The company also says it\u2019s creating a new benefit plan for current employees. As News10NBC has covered, Kodak planned to eliminate its pension program<\/a> to help with paying off a $500 million loan before it\u2019s due. That decision impacts future retirees, but won\u2019t impact current retirees getting a pension from Kodak, as the CEO of Brighton Securities explained.<\/p>\n Kodak said it has used about $312 million of its excess assets to pre-pay its term loans. That reduces the loan\u2019s balance to $200 million.\u00a0Kodak also says it has fully settled \u201call pension obligations\u201d to participants in the pension program. <\/p>\n Kodak is funding its new benefit plan, called the Kodak Cash Balance Plan, with $251 million of investment assets and $5 million of cash. It\u2019s for all U.S.-based employees.<\/p>\n What does \u201cpension reversion\u201d mean exactly? <\/p>\n According to AARP<\/a>, pension reversion is when a company ends a pension plan to recover the amount by which the plan is overfunded, then replaces it with another retirement plan.<\/p>\n Employers must pay a 20% tax on reversions once the employer replaces the pension with a different retirement plan. That new plan must also meet certain standards to protect its promised benefits. <\/p>\n How is Kodak doing financially?<\/p>\n According to Kodak\u2019s website<\/a>, the company is now in a \u201cnet-positive cash position\u201d, with a cash balance of over $300 million after accounting for the excise tax due on the reverted assets.<\/p>\n In August, Kodak told News10NBC<\/a> that it had\u00a0\u201cno plans to cease operations, go out of business, or file for bankruptcy protection\u201d even as the deadline to pay the loan approached. <\/p>\n \t\t\t\t\t\t\t\tFor Related Stories:\u00a0pension plan<\/a>\u00a0\u00a0kodak<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"ROCHESTER, N.Y. \u2014 Kodak has completed the reversion of its pension program, saying it has freed over $1…\n","protected":false},"author":2,"featured_media":169184,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":{"0":"post-169183","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/169183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=169183"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/169183\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/169184"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=169183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=169183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=169183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}