Unisys Transfers Approximately $200 Million of Its U.S. Defined Benefit Pension Obligations to New York Life Through the Purchase of a Group Annuity Contract

Unisys advances its pension de-risking plan, shifting obligations to New York Life without affecting its cash position or retirees’ benefits.

Rhea-AI Summary

Unisys (UIS) has transferred about $200 million of U.S. defined benefit pension obligations to New York Life through a group annuity contract funded with plan assets.

The projected benefit obligations being transferred are of a similar amount and relate to certain retirees in a U.S. qualified pension plan. This transaction raises Unisys’ cumulative reduction in U.S. qualified defined benefit pension liabilities to approximately $520 million since July 2025, toward a $600 million target. The company expects to complete one further settlement by January 2027. New York Life will pay benefits to about 1,700 retirees and beneficiaries, with no change in the gross amount, timing or form of monthly payments.

Unisys expects a one-time, non-cash, pre-tax settlement charge of roughly $150 million in third-quarter 2026, with no impact on its cash position.

Positive

• $200 million of U.S. pension obligations transferred to New York Life via annuity purchase
• Cumulative U.S. pension liability reduction reaches $520 million toward a $600 million target
• Pension settlement funded by plan assets, with no impact on Unisys’ cash position
• New York Life assumes benefit payments for about 1,700 retirees and beneficiaries

Negative

• Transaction expected to trigger a Q3 2026 non-cash, pre-tax settlement charge of about $150 million

News Explained

The transaction is closed: Unisys used plan assets to purchase a group annuity contract, transferring approximately $200 million of projected U.S. defined-benefit pension obligations to New York Life.

Market Context

On July 30, Unisys reported $30.7 million of first-half operating cash outflow, aided by lower pensi...

Analysis

On July 30, Unisys reported $30.7 million of first-half operating cash outflow, aided by lower pension contributions; the trust-funded transfer similarly carried no company cash impact.

Key Figures

Group annuity contract: Approximately $200 million Liability reduction target: $600 million Cumulative liability reduction: Approximately $520 million +3 more

Group annuity contract

Approximately $200 million

Purchased using plan assets

Liability reduction target

$600 million

U.S. qualified defined benefit pension plan liabilities

Cumulative liability reduction

Approximately $520 million

Since July 2025

Additional settlement deadline

January 2027

Expected timing for one additional settlement

Retirees and beneficiaries

Approximately 1,700

Transferred pension benefits

Settlement charge

Approximately $150 million

Third-quarter 2026 one-time, non-cash, pre-tax charge

Key Terms

group annuity contract, projected benefit obligations, defined benefit pension plan

3 terms

group annuity contract financial

"closed an agreement with New York Life Insurance Company to purchase a group annuity contract"

A group annuity contract is an insurance agreement under which a plan sponsor or employer pays a lump sum to an insurance company in exchange for the insurer taking over the obligation to make regular retirement payments to a group of plan participants. Think of it as one party handing its pension bill to an insurer that guarantees the income stream. It matters to investors because such transactions change a company’s reported pension liabilities, cash needs, and shift longevity and investment risk onto the insurance firm that issues the contract.

projected benefit obligations financial

"transfer projected benefit obligations valued at a similar amount"

Projected benefit obligation is an accounting estimate of the present value of a company's future pension and other postretirement benefit payments that employees have already earned, calculated using expected future salary increases, life expectancy, discount rates and other actuarial assumptions. It matters to investors because it reveals the size of the company's long-term retirement promises recorded on the balance sheet, affects the reported funded status and potential future cash contributions, and helps gauge financial obligations that can influence creditworthiness and earnings volatility.

defined benefit pension plan financial

"U.S. qualified defined benefit pension plan liabilities"

A defined benefit pension plan is a retirement program that promises participants a specific monthly payment in retirement, usually based on salary and years worked, with the employer responsible for funding and making up any shortfall. Think of it as the company guaranteeing a steady paycheck in retirement while handling the investments and risks. Investors care because shortfalls become long-term liabilities that can require large cash contributions, affect profitability and borrowing costs, and add uncertainty to a company’s financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Consistent with Unisys' capital structure and pension strategy, this agreement reduces pension liabilities and lowers the future cost of fully removing its U.S. pension obligations

BLUE BELL, Pa., Sept. 16, 2026 /PRNewswire/ -- Unisys (NYSE: UIS) today announced it closed an agreement with New York Life Insurance Company ("New York Life") to purchase a group annuity contract totaling approximately $200 million using plan assets. Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the Company's U.S. qualified pension plans to New York Life.

As outlined in Unisys' July 2025 Capital Structure and Pension Strategy investor presentation, the Company targeted a $600 million reduction of U.S. qualified defined benefit pension plan liabilities. This latest annuity purchase transaction brings the cumulative reduction to approximately $520 million since July 2025. The Company anticipates completing one additional settlement by January 2027, which would bring the reduction in U.S. liabilities closer to achieving the target.

As part of the transfer, New York Life will assume responsibility for providing pension benefits for approximately 1,700 retirees and beneficiaries with monthly benefits lower than certain thresholds. There will be no changes to the gross amount, timing, or form of the monthly pension benefit payments, backed by New York Life's financial strength and long-term commitment to policy owners.

Unisys anticipates that this action will result in a third-quarter 2026 one-time, non-cash, pre-tax settlement charge of approximately $150 million. Since the purchase will be made by the pension trust, there will be no impact on the Company's cash position.

About Unisys

Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, AI, digital workplace, applications and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for more than 150 years, visit unisys.com and follow us on LinkedIn.

About New York Life

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life's family of companies offers life insurance, disability income insurance, retirement income, investments, and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.²

¹Based on revenue as reported by "Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual)," Fortune magazine, 6/3/2026. For methodology, please see https://fortune.com/company/new-york-life-insurance/.
²Individual independent rating agency commentary as of 10/28/2025: A.M. Best (A++), Fitch (AAA), Moody's Investors Service (Aa1), Standard & Poor's (AA+).

Forward-Looking Statements

Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely and are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this release include the impact on the U.S. pension. Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site, http://www.sec.gov. Information included in this release is representative as of the date of this release only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys' results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

RELEASE NO.: 0916/10070

Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.

UIS-C

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SOURCE Unisys Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the longer-term pension liability goal Unisys is working toward?

Unisys has targeted a $600 million reduction of U.S. qualified defined benefit pension plan liabilities, as described in its July 2025 capital structure and pension strategy presentation. Following this transaction, cumulative reduction is about $520 million, and the company anticipates one additional settlement by January 2027 to move closer to the target.

How are retirees and beneficiaries affected by this pension transfer to New York Life?

Approximately 1,700 retirees and beneficiaries with monthly benefits below certain thresholds will have their pension benefits paid by New York Life. The company states there will be no changes to the gross amount, timing, or form of their monthly pension payments, which will be backed by New York Life’s financial strength and long-term commitment to policy owners.

Will this annuity purchase affect Unisys’ liquidity or cash balances?

No. The group annuity contract will be purchased using assets from the pension trust. Unisys indicates that, because the purchase is funded by plan assets, there will be no impact on the company’s cash position.